consumer

Psychology of Business Consumer Psychology

Consumer Information Processing Process

• Consumers are constantly exposed to external stimuli in their daily lives, intentionally or unintentionally. These stimuli can be advertisements, product placements, or other marketing tactics.

• Consumer attention varies; some stimuli are noticed while others are ignored. This selective attention leads to the perception process, where consumers assign meanings to the stimuli they notice, evaluating them as either positive or negative.

• The perception process is influenced by prior knowledge stored in long-term memory, making it a crucial part of the overall information processing process.

Exposure

1. Definition and Importance

   • Exposure is the initial step in consumer information processing, where an individual comes into physical contact with a stimulus, activating one or more of the sense organs.

   • There are two types of exposure:

     • Intentional Exposure: Consumers actively seek out stimuli to solve problems.

     • Incidental Exposure: Consumers encounter stimuli without intending to.

2. Selective Exposure

   • Consumers tend to avoid unnecessary exposure to stimuli, leading to selective exposure that minimizes advertising effects. Effective advertising must find ways to be engaging and enjoyable for consumers.

   • Zapping Effect: The tendency of consumers to switch channels when commercials start.

   • Strategies to combat selective exposure include creating humorous or series-type advertisements that captivate attention.

3. Threshold Levels

   • For an advertisement to be meaningful, the intensity of the stimulus must exceed a specific threshold.

   • Absolute Threshold: The minimum intensity of stimulus energy needed for detection 50% of the time.

   • Differential Threshold (Just Noticeable Difference or JND): The smallest change in a stimulus that can be detected by consumers.

   • Subliminal Advertising: Exposure below conscious awareness.

Attention

1. Definition

   • Attention is the focused concentration of cognitive processes on specific stimuli.

   • This can be influenced by personal relevance or importance of the stimulus to the consumer.

2. Personal Factors Affecting Attention

   • Involvement: Consumers are more likely to pay attention to relevant stimuli.

   • Existing Beliefs and Attitudes: Consumers may exhibit perceptual defense when confronted with information inconsistent with pre-existing beliefs.

   • Adaptation: This phenomenon occurs when consumers become desensitized to repeated stimuli and fail to notice them after a while.

3. Stimulating Factors

   • Prominent Stimuli: Elements that noticeably stand out in an ad.

   • Novel Stimuli: Unique aspects designed to capture attention.

   • Eliciting Pleasure: Creating positive associations with a brand enhances engagement.

Perception

1. Definition

   • Perception involves interpreting stimuli based on individual subjective standards. It is a process of organizing external information and assigning meaning to it.

2. Perceptual Organization

   • The process of collating fragmented information through perceptual encoding and integration.

   • Closure and Grouping: Consumers fill in missing pieces of information or perceive elements as unified chunks.

3. Perceptual Interpretation

   • Involves categorizing and interpreting stimuli based on individual experiences and motivations.

   • Perceptual Inference: Consumers infer additional information about a product from a single element, such as country of manufacture.

Factors Influencing Perception

1. Personal Factors

   • Motivation, expectation, knowledge, and confidence play a key role in perception.

2. Stimuli Factors

   • The visual and olfactory characteristics of stimuli can alter perception.

   • Language and presentation order affect how consumers perceive advertising messages.

Consumer Decision-Making Process

1. Problem Recognition

   • This occurs when consumers identify a gap between their current state and desired state, prompting a desire to remedy that discrepancy.

   • The process begins here and involves evaluating the magnitude and constraints of the perceived problem.

2. Information Search

   • Consumers evaluate motivational factors and constraints when determining the extent of information search required before making a purchasing decision.

   • This search can be either internal, recalling past experiences, or external, seeking new information.

3. Evaluation of Alternatives

   • Consumers compare various brands or products based on established criteria and preferences.

   • Two main evaluation methods exist:

     • Compensatory Method: Consumers weigh positive and negative attributes to make decisions, allowing strengths in one area to offset weaknesses in another.

     • Non-compensatory Method: Involves strict cutoffs for certain attributes that must be met before considering a product.

Factors Influencing Consumer Behavior

1. Environmental Factors

   • Include culture, social class, family, and reference groups, which shape consumer behavior and choices.

2. Personal Influences

   • Consist of perception, learning, motivation, personality, and lifestyle, all of which can significantly impact consumer decision-making.