Consumer Behavior, Module 9

Representativeness heuristic is defined as

Making a judgment by simply comparing a stimulus with the category prototype or exemplar

Representativeness heuristic suggest that companies position offerings close to a

Prototype that has positive associations in consumers’ minds

When the representative heuristic shortcut leads to a judgment that is

Negatively biased, marketers must take steps to overcome it

Availability heuristic is defined as

Basing judgments on events that are easier to recall

The law of small numbers is the

Expectation that information obtained from a small number of people represents the larger population

To capitalize on the availability bias:

• Provide consumers with positive and vivid product-related experiences through the use of marketing communications or ask consumers to imagine such situations

• Attempt to stimulate positive word-of-mouth communication

To overcome the availability bias:

• Provide consumers with base-rate information about the general population

In some low-effort situations, consumers may

Make a decision without being consciously aware of how or why they are doing so

As much as 50% of all shopping decisions are made

Spontaneously and unconsciously while consumers are in the store

Unconscious choices may be

Strongly affected by environmental stimuli

Marketers can use scent, music, color, displays, and other sensory cues to

Influence choices

Evaluative conditioning can influence

Attitudes and unconscious brand choices

Consumers may form accurate yet unconscious impressions through

Thin-slice judgments

Certain choices represent goal-related behavior even though

Consumers are pursuing the goal almost automatically, without conscious thought

Traditional hierarchy of effects is defined as the

Sequential steps used in decision-making involving thinking, then feeling, then behavior

The traditional hierarchy of effects does not

Apply to all decision-making situations

Low-effort hierarchy of effects is defined as the

Sequence of thinking-behaving-feeling

In the low-effort hierarchy of effects, the consumer enters the decision process with a set of

Low-level beliefs based on brand familiarity and knowledge that serve as the foundation for the decision or behavior

After making the decision using the low-level hierarchy of effects, and while using the product, the consumer evaluates the brand and may or may not

Form an attitude, depending on how strongly the brand is liked or satisfies needs

Decisions can be made based on

Positive feelings rather than on beliefs or knowledge (feeling-behaving-thinking)

Under low motivation and low processing opportunity, how a marketing message is

Framed will influence how consumers react

A negatively framed marketing message is

More effective than a positively framed message

Optimizing is when

The goal is to find the best possible brand

Optimizing occurs in

High-elaboration decisions

Instead of optimizing, consumers are

More willing to satisfice

When satisficing, a consumer is looking to

Find a brand that is good enough to simply satisfy their needs

Satisficing occurs in

Low-elaboration decisions

Most low elaboration decisions are made

Frequently and repeatedly

Choice tactics are defined as

Simple rules of thumb used to make low-effort decisions

Choice tactics:

• Price tactics

• Affect tactics

• Performance tactics

• Normative tactics

• Habit tactics

• Brand-loyalty tactics

• Variety-seeking tactics

Operant conditioning is defined as a

Process of learning drive by the use of rewards to reinforce desired behavior and punishment to discourage objectionable behavior

Reinforcement usually comes from

A feeling of satisfaction when we perceive that our needs have been adequately met

Reinforcement increases the probability that

We will purchase the same brand again

Reinforcement reinforces the consumer’s

Choice tactic

Punishment is when consumers

Have a bad experience with a product or service, form a negative evaluation of it, and never purchase it again

Punishment may lead consumers to

Reevaluate their choice tactic and use a different tactic next time

The choice tactics we use often depend on

The product category that we are considering

The choice tactics we use depends on which

Brands are available and our experiences with them

The choice tactics we use are also influenced by the amount of

Advertising, price variations, and the number and similarity of brands

Experiences help us learn what works for

Each product, and we use these tactics to minimize decision-making effort for future purchases

Performance-related tactics are defined as

Tactics based on benefits, features, or evaluations of the brand

The primary marketing strategy objective should be to

Increase the likelihood of satisfaction through offering quality

Marketers should select product features or benefits that are

Important to consumers, help to differentiate the brand from competitors, and convince consumers that they will be satisfied if they buy the product

Sales promotion strategies such as free samples, price deals, or coupons only work if

Product performance satisfies and reinforces the consumer

Habit is defined as a

Learned behavior that involves regular performance of the same act repeatedly over time

Behaviors are often performed

Unconsciously and may be difficult to discontinue

Getting consumers to acquire or use an offering

Repeatedly is important

Shaping is

Leading consumers through a series of steps to create a desired response

Sales promotion techniques can induce

Brand switching

Introduce a new and unique benefit that

Satisfies consumers’ needs better than existing brands

Marketers do not want

Repeat-purchase customers to break their buying habits

To prevent repeat-purchase customers from breaking their buying habits:

• Offer comparable deals to build resistance to switching

• Use distribution and inventory control

• Use advertising and other marketing communications

Brand loyalty is defined as

Buying the same brand repeatedly because of a strong preference for it

Multibrand loyalty is when you

Buy two or more brands repeatedly because of a strong preference for them

You can identify brand-loyal consumers by

Focusing on purchase patterns

Develop loyalty through

Nonprice promotions or through less drastic price promotions

Satisfy the consumer with a

High-quality product

Cultivate brand loyalty through

Brand-building sales promotions

Market toward non-loyal or habitual consumers, except when

A brand has a strong point of superiority or differentiation when compared with the competition

Price-related tactics is defined as

Simplifying decision heuristics that are based on price

Price-related tactics are used when

Consumers perceive few difference among brands and when they have low involvement with the brands in the consideration set

Consumers consider how much they must pay in relation to

The price of other relevant brands or to the price they previously paid for that product

The zone of acceptance is the

Acceptable range of prices for any purchase decision

Consumer perceptions play an important role in

The use of price-related tactics

A deal-prone consumer is a consumer who

Is more likely to be influenced by price

Marketers can use a variety of pricing techniques as long as

The savings are at or above the just noticeable difference and within the zone of acceptance

Pricing techniques marketers can use:

• Coupons

• Price-offs

• Rebates

• Two-for-one

Normative choice tactics are defined as

Low-elaboration decision-making that is based on others’ opinions

Normative choice tactics can result from:

• Direct influence, in which others try to manipulate us

• Vicarious observation, in which we observe others to guide our behavior

• Indirect influence, in which we are concerned about the opinions of others

Normative choice tactics are particularly common among

Inexperienced consumers who have little knowledge

Online communication can increase the importance of

Normative choice tactics

Marketers can emphasize the motivations of normative choice tactics in

Advertising and can attempt to stimulate word-of-mouth communication

Affect is defined as

Low-level feelings

Affect is most likely to be part of the decision process when the offering is

Hedonic and when other factors are not in operation

Affect-related tactics are tactics based on

Feelings

Affect referral is a

Simple type of affective tactic whereby we simply remember our feelings for the product or service

Brand familiarity is defined as the

Easy recognition of a well-known brand

Co-branding is an

Arrangement by which two brands form a partnership to benefit from the power of both

By creating positive affect toward their brand, marketers can

Increase the probability that their brand will be selected

Two key aspects of a product’s design that generates more positive affective response:

• Unity

• Prototypicality

Unity is when

All the visual parts of a design fit together

Prototypicality is when

The object is representative of its category

Brands that have positive cross-cultural affect can

Be marketed internationally

Hedonic offerings that involve style or taste rely heavily on

Affective responses

Variety seeking is defined as

Trying something different

Consumers seek variety for two major reasons:

• Satiation

• Boredom

Consumer may seek variety in public situations because

They anticipate that others will evaluate their decision more positively

Variety seeking is the most likely to occur when

Involvement is low, there are few differences among brands, and the product is more hedonic than functional

Marketers can reduce boredom simply by

Providing more variety in a product category

Optimal stimulation level (OSL) is

The level of arousal that is most comfortable for an individual

A sensation seeker is

A consumer who actively looks for variety

Vicarious exploration is

Seeking information simply for stimulation

Impulse purchase is defined as an

Unexpected purchase based on a strong feeling

An impulse purchase is characterized by:

• An intense/overwhelming feeling of having to buy the product immediately

• A disregard for potentially negative purchase consequences

• Feelings of euphoria and excitement

• A conflict between control and indulgence

Prevalence varies

Across cultures and individuals

Motives may be

Intrinsic and/or external