Week 2 Flashcards
(15 cards)
Customer decition making
→ picture is an example of consumer decision making. It starts with a problem (in this case your sink looks dirty asf). Then you do some research on what it is and how to remove it, evaluate alternatives & make a final purchasing decision. Once you’ve bought it, you will evaluate the product and either recommend it or never use it again.
Buying behaviours
(1) VOMPLEX → occurs when the consumer is highly involved with the purchase and when there are significant differences between brands.
(2) HABITUAL → when a consumer makes repeat purchases a number of times on an already known brand without the process of high involvement and decision
(3) VARIETY SEEKING→ individuals that switch among products, categories or brands to avoid the decreasing utility due to repeat purchases or consumption of the same products.
(4) DISSONANCE-REDUCING → when a consumer is highly involved in the purchase of an item but has a hard time pinpointing the difference between various brands
What influences our decision making during buying?
(a) Personality & concept of self
(b) Perception & how we process information
(c) Learning from experiences
(d) motivation and values
(e) Attitudes & beliefs
The Colour Changing Card Trick
The youtube video shows how because we have a certain selective focus on the cards, we do not notice other changes that we might find more irrelevant such as clothing changes or background colours.
Ebbinghaus Forgetting curve + Ilison
Ebbinghaus Illusion = explains to us that our perception of an object’s size is influenced by the visual context or background in which it is presented, rather than solely by its absolute size.
Ebbinghaus Forgetting curve =
Shows that when we get new information if we don’t recall it soon, we are more likely to forget and have to relearn it. Other factors that can influence this curve are stress or interest level.
In order to fix this, we can use Spaced Learning. Relearning and remembering information multiple times over a period of time ensures you’ll remember things better overall.
Shrinkflaction
= **when the size or quantity of a product decreases while its price remains the same or increases. **So you reduce the amount of product being offered to consumers without corresponding reduction in price, so you maintain a profit margin or even increase it.
Selective Attention
**Process by which stimuli are assessed into meaningful vs non-meaningful **- links to MOA (motivation, opportunity, Ability) in order to process information.
Eg MOA with Cocktail Party Effect = Selective Hearing. You might not hear someone’s conversation in the background very well but as soon as your name is mentioned you can suddenly hear everything clearly. Eg MOA with Bike advertisements. As soon as you’ve bought a bike, you start seeing advertisements about them everywhere
Selective Distortion (Interpretation)
The tendency for people to interpret information in a way that supports previously established beliefs or perceptions.
→
Ex. Loftus & Palmer Car crash study Where people watched 2 cars crash into each other and people had to guess how fast the cars were going. However, when questions are posed differently, people have different perceptions. People will have different estimations if asked if they “smashed”, “collided”, “bumped”, “hit” or “contacted” as some sound more light and others more severe.
Selective Retention- Hint: IF in exam, YOU remeber
The inclination for people to be more likely to remember information that closely aligns with their needs, interests, beliefs and values.
Ex. You won’t remember every detail in this summary but if I tell you this specific card will show up in the exam you’ll make more of an effort to remember it :p
Assertive Memory Network
Information is stored in long-term memory which is then organised as a series of connected nodes. Each node in the network represents a concept with links connecting the various concepts.
Ex. this diagram of Donald Trump
Companies can use associative memory network to make consumers connect things together and manipulate them into buying things
Elaboration
Likelihood Model
How likely are you to elaborate? How likely are you to use central or peripheral?
Central Route Processing → thinking about a lot of details. Eg I need a car, the price is great, high performance?
Peripheral Route Processing → paying attention to things that aren’t very important (eg the colour of the car rather than the quality) eg I just need any car, the colour is nice, I guess I can afford it, cute girls?
Dual Process Theory
→ System I Tends to be the one we think with most. (thinking with the heart) So: hot, impulsive, unconscious, automatic, fast, low effort
System II → If we need to think harder, then we use system II, it needs more effort and time to activate. (thinking with the brain) So: cold, reasoning, reflexive, conscious, rational, controlled, slow, high effort
Cultural Differences
→ Consumption experience can be different in the ways of shopping, quality aspects, cooking methods, consumption situations, purchase motives etc etc.
**Brands need to market in different manners in accordance with cultural needs. **Eg In China Mcdonald’s has Rice-based menus and fashionable locations, whereas in the US they don’t and have big drive-throughs instead. Each culture has different views about consumption.
So it is important to do in-depth qualitative research and ask yourself: why do they need it? How much do they value money? Future orientation? Rituals? What is the value of self? What is the environment like? Etc.
Maslos’s Hirearchy of Needs
The diagram shows what we need. Everytime we fulfil something on the bottom, we start to work our way upwards.
However, there’s not always a strict hierarchy. Different cultures encourage/discourage the pursuit of different needs:
Hindu → self-actualisation
Age different priories
Individualism vs Collectivism
Consumers are complex!
Consumers are not always simple, we all have different conventions, habits, customs etc.
We also have different views about consumption in different cultures, so it is important in marketing to have in depth knowledge and do qualitative research.
The diagram shows how consumers all have different motivations that we should look into when doing market research and ask the questions as seen.
