...Tutorial 6 Chapter 8: Consumer Learning 1. The Elements of Consumer Learning • Consumer learning is a process: it evolves and changes as a result of newly acquired knowledge or from actual experience. • Newly acquired knowledge and personal experience serve as feedback to the individual and provide the basis for future behaviour in similar situations. Learning: From Simple, almost reflexive responses to abstract concepts and complex problem-solving. 2. Behavioural Learning Theories Also called stimulus-response theories: Based on the premise that observable responses to specific external stimuli signal that learning has taken place. Classical Conditioning Pavlov: Conditional learning results when a stimulus (unconditional stimulus: food) that is paired with another stimulus (conditional stimulus = bell) that elicits a known response serves to produce the same response when used alone. Optimal conditioning: Creation of a strong association between the conditioned stimulus (CS) and the unconditioned stimulus (US) => 1. forward conditioning (the CS should precede the US); 2. repeated pairings of the CS and the US; 3. a CS and US that logically belong together; 4. a CS that is novel and unfamiliar; and 5. a US that is biologically or symbolically salient. →Neo-Pavlovian condition: The consumer (information seeker) uses logical and perceptual relations among events to form a sophisticated representation...
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...UNIVERSITY The traditional vs. the online market A study of consumer behaviour and consumer preferences in the purchase of high-involvement products Bachelor Thesis within Business Administration Author: Denis Čelhasić Tommy Grdić Lukas Özer Tutors: Maya Paskaleva Olga Sasinovskaya Jönköping January 2008 ii Acknowledgements First of all, we would like to express appreciation to our academic tutors, Olga Sasi-novskaya and Maya Paskaleva, for providing valuable feedback and guidance on our work. We would also like to thank Robert Bengtsson, CEO at MindValue AB in Gothenburg, Sweden, for supporting us throughout the research by sharing ideas and vital information concerning the marketing industry on the Internet, as well as the operations of MindValue AB itself. We would further like to take the opportunity to send gratitude to the interview-ees making it possible for us to retrieve the information essential for conducting this study. Finally, our thanks goes to Carl Emil Svedin, legal counsel at Saab AB in Linköping, Swe-den, for taking his time to validate the credibility of our translations made of the transcripts from the interviews. Denis Čelhasić Tommy Grdić Lukas Özer January 2008 Jönköping International Business School iii Bachelor Thesis in Business Administration Title: The traditional vs. the online market: A study of consumer be-haviour and consumer preferences in the purchase of high-involvement products Authors: Čelhasić Denis, Grdić Tommy, Özer Lukas Tutors: Paskaleva...
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...AMN 400 - Consumer Behaviour Assessment Item 1 - Journal Article Critique Word Count: 944 Words Introduction Thøgersen, Jørgensen & Sandager in their 2012 article Consumer Decision Making Regarding a “Green” Everyday Product” discuss consumer’s interaction with brands through the lens of product differentiation and the effects on involvement in the purchase process. The article examines the consumer behaviour of involvement and develops an understanding qualifying the differences between a high involvement interaction and a simple heuristic with respect to an everyday product. The Evaluative result is mixed: The article’s approach demonstrates a highly developed research methodology with clear and concise conclusions. However, there are assumptions made with respect to the participants and the subject matter which detract from the consistency of the article, resulting in a narrow perspective. Summary The article considers brand differentiations in a segmented market, hypothesising the heightened involvement a consumer experiences when brand presentation is geared towards an aspect that connotes emotive associations. The authors conduct observations and interviews with a set of consumers purchasing an “everyday” item from two department stores in Denmark to ascertain their purchasing attitudes and decision making processes when considering brand alternatives. the focus of this study was the engagement of consumers with environmentally sustainable or “green” products;...
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...between the various types of consumers, according to VALS segmentation and the consumer impulse buying behavior. | | TABLE OF CONTENTS Executive Summary | 3 | Background of the problem | 3 | Problem Statement | 4 | Research Objectives | 4 | Review of Literature | 4 | Segmentation Plan | 5 | Research Hypothesis | 6 | Research Design | 6 | Results and Practical utility of the research | 6 | Scheduling the research | 7 | Results and outcomes of the research | 7 | Glossary of Terms | 8 | References | 9 | 1. Executive Summary The vibrant and exotic atmosphere of Delhi local markets can make shopping lots of fun. One of the biggest sectors is apparel sector. Local apparel markets in Delhi sell hundreds or thousands of products daily. It is not only famous in Delhi but people from all over India do their wedding shopping from Delhi shops which are cheap and of new fashion. People do planned as well as unplanned shopping from these local shops. It is usually seen that buyers purchase products which they have not planned and this phenomenon of unplanned purchasing is termed as impulse. There are many factors which lead to unplanned or impulsebuying. This leads us to determine the factors that lead to impulse buying behaviour in consumers as well as to determine which segment (based on VALS classification scheme) of consumers show the most impulse buying behaviour. 2. Background of the...
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...first stage of the consumer decision process, its the result of a discrepancy between a desired state and an actual state and an actual state that is sufficient to arouse and activate the decision process. Types of consumer decisions The term consumer decision suggests that an individual carefully evaluates the attributes of a set of goods, services or brands, and rationally selects the one that solves a clearly recognized need for the least cost, many costumer decisions focus on the feelings and emotions acquired on using the brand or the environment the product was purchased. A brand maybe selected on the basis that your friends will like it or that it makes you feel good and not on the attributes it portrays (price, style, functional characteristics). Consumer decision are often the result of: a single product - you're running low on petrol or you have run out of memory on your computer a convergence of several problems - ageing car or a growing feeling of inadequacy and low self esteem PURCHASE INVOLVEMENT PASTE FIGURE Purchase involvement is the level of concern for, or interest in, the purchase process once the purchase process has been triggered by the need to consider a particular purchase. Initial interest in involvement was stimulated by early research on television advertising and on low involvement learning. Over the years, involvement has shown to influence a number of behavioural outcomes, including search behaviour and information processing...
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...MARKET SEGMENTATION THE ACCESSORIES MARKET FOR MEN MKW 2402 CONSUMER BEHAVIOUR Chrismal Perera 24855871 Thisura Goonawardena 25633872 Pratul Venglet 24943436 Keshav Ramkhelawon 23549785 Srijan Menon 25058568 EXECUTIVE SUMMARY This report critically analyses the internal influences on consumer’s behavior and their buying decisions. The influences described are Personality and Self Image, Motivation and Involvement. These Influences are understood to create a Marketing Strategy for the launching of the New Classic Watch we have chosen. A few potential target markets were analysed, such as Fashion Watch Buyers, Sports Watch Buyers and finally the buyers of Classic Watches. We chose to target Classic Watches as we better understood the internal influences affecting this group and could come up with a strong strategy to successfully target this market and earn a potential return. The need for Self Esteem is a major influence for buyers of Classic Watches. Their professions or social groups demand sophistication and splendor, the individual within these groups have high self esteem and feed their image with products such as classic collectible watches. The level of involvement may be very high because of the huge price tag that accompanies the product. We have recommended to premium price the product to reflect its superior craftsmanship and the expensive material used, it also reflects the majesty and the elegance of the superior classic watch. The watch...
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...marketers to understand the consumer behaviour. Both approaches have their own supporters who are the theorists or marketers. However, there has been an argument that about which model describes the consumer behaviour the best existed in markets for decades. “Consumer behavior is widely understood as a problem-solving and decision-making sequence, the outcome of which is determined by the buyer's goal-directed processing of information.” (Foxall 1992, p384). Cognitive model describes the consumers go through a few processes that consist of a few steps to achieve their purchase decisions among some alternatives. Although cognitive model sounds make sense and persuasive, it does not really have empirical facts to prove that it really works in all the real market. However, cognitive model do exist in the real market world in some buying situations. The main factor that affects the feasibility of cognitive model is the involvement of the consumer products. The higher the involvement of the product category, consumers are more willing to spend time for the decision making process. However, this does not mean general low involvement products will only suitable to describe as behavioural purchase. For example, when individuals buying a pen, they will make their purchase decision in behavioural way instead of cognitive way since the product is low involvement product and it occurs frequent in their life. However, for organisations who purchasing the same products, they might make their...
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...bs_bs_banner International Journal of Consumer Studies ISSN 1470-6423 Beyond the fad: a critical review of consumer fashion involvement ijcs_1041 84..104 Iman Naderi Department of Marketing and Logistics, College of Business, University of North Texas, Denton, Texas, USA Keywords Consumer involvement, content analysis, fashion, literature review. Correspondence Iman Naderi, Department of Marketing and Logistics, College of Business, University of North Texas, 1155 Union Circle 311396, Denton, Texas 76203-5017, USA. E-mail: iman.naderi@unt.edu doi: 10.1111/j.1470-6431.2011.01041.x Abstract Fashion involvement has been regarded as an important research topic in consumer research. Despite the importance of this topic, no attempt has been made in the past to review, assess and consolidate extant research on fashion involvement. This study presents a comprehensive and critical review and analysis of the recent studies on involvement in the context of fashion clothing to indicate the current state and identify possible gaps. A content analysis of the current peer-reviewed journal articles published on this research topic reveals a paucity of research on a number of antecedents and consequences of involvement. Further, the findings show that the research method is biased towards the survey method as opposed to experimentation. In this paper, the results of the content analysis outlining methodologies, sample characteristics, variables and major findings are provided and...
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...The Buyer Decision Process (BDP) Understanding and effectively responding to the process of customer’s behaviour such as their recognition of a need as well as searching for information and evaluation of alternatives before they purchase a product are key success factors for marketing strategy (Johnston, 2013). This process which consists of 5 stages is called the Buyer Decision Process. Subsequently is an outline of the 5 stages in the BDP: • The recognition of unmet need/problem – the first and the most significant footstep in BDP is identifying a need from internal or external stimuli such as hunger, thirst, or word of mouth. • Information Search – after understanding a problem, then the consumer normally search the information from internal and external factor to find out what they feel is the best solution. For instance, the information from personal experience, observation of other consumers, advertising or communication generated by or outside the organization. • Evaluation of Alternatives – in this step, the buyer will evaluate which products are more beneficial. However, there is other consideration such as the customer’s attitude and involvement toward the evaluation process. If the customer’s attitude is positive and involvement is high, then they will evaluate a number of companies or brands; but if it is low, only one company or brand will be evaluated. • Purchase Decision – it is the moment where the final purchase takes place. According to Philip Kotler (cited...
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...MKT2CBE Consumer Behaviour Week 2 Chapter 2, Value and the Consumer Behaviour Value Framework Learning Outcome 1: Describe the consumer value framework, including its basic components CVF: Identifies variables that influence the consumer both internal and external whilst also looking at the process of turning a need into a want into the acquisition of a product; then having the product do something for them (creating value) be it hedonic or utilitarian. Internal Influences: Learning, Perception, Memory, Attitude, Categorisation (cool, uncool) Personality of Consumer: Motivation, Personal Values, Lifestyle, Emotional Expressiveness (Assignment) Consumption Process: Needs, Wants, Exchange, Costs/Benefits, Reactions Value: Utilitarian/Hedonic Relationship Quality External Influences Situational Influencers Affect: feelings Consumer research: defining, establishing and testing individual differences in order to divide market External Influences: interpersonal, social environment (workmates/housemates/family) Situational Influences: time of day Learning Outcome 2: Define consumer value and compare and contrast two key types of value Value: What you get – What you give up eg. 7/11 convenience of opening 24/7 allows the company to introduce a higher premium Utilitarian: utility aspect (product, functionally, does something for you) Hedonic: facebook updates on your phone Learning Outcome 3: Apply the concepts of marketing strategy and...
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...lasting because it tends to endure over time • It is general because it applies to more than a momentary event • Can be very product-specific behaviours (Crest toothpaste rather than Colgate) • Can be toward more general consumption-related behaviours (how often they should brush their teeth) Attitude Object (A0): Anything toward which a person has an attitude, whether it is tangible or intangible. The Functions of Attitudes Functional Theory of Attitudes: Attitudes exist because they serve some function for the person; that is, they are determined by a person’s motives. • Developed by psychologist Danial Katz Attitude Functions 1. Utilitarian Function a. Related to the basic principles of reward and punishment b. Develop attitudes based on whether these products provide pleasure or pain c. Ads that stress straightforward product benefits appeal to the utilitarian function 2. Value-expressive Function a. Express the consumer’s central values or self-concept b. Product attitude not because of its objective benefits c. Of what the product says about him/her as a person d. Highly relevant to lifestyle analyses, where consumers cultivate a cluster of activities, interest and opinions to express a particular social identity 3. Ego-defensive Function a. Formed to protect the person, either from external threats or internal feelings b. Products that will protect their image 4. Knowledge Function a. A result of a need for order, structure, or meaning b. This need...
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...said that much , if not all ,behaviour is related to the stresses within the personality’s three interacting sets of forces, the id ,igo and superego, interact to produce behaviour. According to Freudian theory, the id is the source of all driving psychic energy, but its unrestrained impulses cannot be expressed without running afoul of society’s values.The superego is the internal is the internal representative of the traditional values and can be conceptualized as the moral arm of personality.The manner in which the ego guides the libidinal energies of the id and the moralistic demands of the superego accounts for the rich variety Harold H. Kassarjian Journal of Marketing Research Vol. 8, No. 4 (Nov., 1971), pp. 409-418 Personality and Consumer Behavior: A Review Abstract This article reviews the current literature in the fields of consumer behaviour and the marketing of services in order to examine the main issues facing the consumer in purchasing services, as opposed to goods. Five distinguishing characteristics of services are discussed and the implications of these for the consumers are placed within the information processing model of consumer behaviour theory. The article suggests that there are particular problems for consumers in acquiring effective information regarding services, making comparisons on the basis of that information and subsequently evaluating the service encounter. It is our contention that unless consumer responses to the particular...
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...World Journal of Social Sciences Vol. 2. No. 1. January 2012. Pp. 54 - 73 Predicting Brand Loyalty and Product Involvement Behavior of Indian Teenagers Incorporating the Moderating Effect of Brand Influence Score. *Debasis Bhattacharya, ** Dipak Saha and ***Shuvendu Dey Creating and maintaining strong brand and a band wagon of loyal customers have become increasingly difficult in today's competitive environment due to proliferation of numerous brands in a generic product category. Brand loyalty has been shown to be associated with higher rates of return on investment due to increase in the market share. Past studies in this area reveal the dependence of researchers to administer the scale developed by Kapferer and Laurent as well as the scale developed by Zaichkowsky to capture product involvement facet. Studies reveal that teenagers in India spend more than Rs 66000 million in a year only on clothing items. Astonishingly, very few studies have been undertaken to relate the brand loyalty and product involvement behavior of teenagers. The data for this study is gathered from a cross section of teenagers drawn from different socioeconomic backgrounds from the major metros of Indi during the third quarter of 2010. In this paper apart including only involvement from including product involvement brand influence scores, brand trust and the size of the consideration set have been incorporated to predict brand loyalty of teens. The findings of the study reveal that multi-dimensional...
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...notions of superior quality and competitive prices. In order to do this, it must take into account the needs, attitudes, culture as well as many other determinates of consumer behaviour to be able to penetrate the market and gain market share over its competitors. Wendy’s will need to consider which factors are most important to its target market in influencing their purchase decision and strive to gain a competitive edge in the market. This essay will analyse Wendy’s marketing strategy in its international expansion and in particular, into Germany by identifying the decision making process and determinates that contribute to the attitudes and behaviour of its potential customer base. Consumer Decision-Making Process The consumer decision-making process is a series of steps which a consumer will go through before, whilst and after purchasing a product. The first step is need recognition, where the consumer realises a need that needs to be resolved. This need is often stimulated by advertisements or sighting a product. Consumers go to Wendy’s to satisfy their need for food, which Wendy’s aims to satisfy with its menu. In Korea, Wendy’s restaurants are located in high-traffic, prime visibility locations that keeps the store in the public eye – which may stimulate latent needs of consumers. For example, a consumer who was not overly hungry may decide to drop into Wendy’s to grab a quick snack just because he/she saw the large attractive signs. Next is information search,...
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...Introduction to Consumer Behaviour What is Consumer Behaviour? * The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires * An ongoing process * Exchange – 2+ people giving and receiving something of value = an integral part of marketing Consumers’ Impact on Marketing Strategy * Consumers’ needs can be satisfied to the extent that marketers understand the people/orgs that will use what they are trying to sell – better than the competitors * Consumer response is the test of whether a marketing strategy will exceed – knowledge about consumers is important Segmenting Consumers * Marketing segmentation – identifies groups of consumers who are similar to one another in 1+ ways and then devises marketing strategies to appeal to 1+ of these groups * Demographics – measure observable aspects – age, gender, family structure/life stage, social class/income, ethnicity * Psychographics – measure consumers’ personalities, attitudes, values, lifestyles Marketing’s Impact on Consumers * Relationship marketing – making an effort to interact with customers on a regular basis, giving them reasons to maintain a bond with company * Ex: restaurant sending a birthday coupon to consumer every year * Popular culture – music, movies, books, sports, celebs, consumed by mass market – a product of and inspiration for marketers * Consumer-generated...
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