...which consumers use cognition during pre-purchase situations, when comparing alternative brands or products, to ultimately satisfy a need. Following this, the report explores the theory of cognitive dissonance and its impact on post-purchase evaluation. An introduction to cognitive psychology A.Balota and J.Marsh (2004:1) outline that the word cognitive derives from the Latin word cognare, meaning, “to know.” Although experimental psychologists have studied related issues to cognitive psychology for well over a century, A.Balota and J.Marsh (2004:1), the beginnings of modern cognitive psychology begun nearly 50 years ago, when people begun to take a huge interest in the cognitive approach to human behaviour of knowing and thought, H.Ashcraft (2002:2). H.Ashcraft (2002:2) considers the memory and cognition to be the mental events and knowledge we use when we recognise an object, remember a name, have an idea or solve a problem. Understandably, A.Balota and J.Marsh (2004:1) outline that cognitive psychologists are particularly interested in the processes by which people do this, and the way that patterns and objects are recognised, attended, remembered, imagined and verbally elaborated. Cognition and consumer decision making Baker (1999:109) suggests that consumer decision making is commonly described as a cognitive process. A consumer purchase is commonly a response to a problem, which arises when the consumer initially becomes aware of a need or a want. Consumers require...
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...Cognitive Dissonance: Abortion Individuals are social by nature and can be influenced by various factors when making choices. An individual is capable of feeling the pressure from family, peers, and community. An individual may also believe that doing something like cheating is acceptable if in the end one obtains the desire result. An individual may experience an internal exchange of ideas and problems when making a decision how to find the way through a complicated decision. Individuals may also negotiate and barter with their divine beliefs to feel at ease when making a decision to behave in an unpleasant and moral way. Cognitive dissonance theory is extremely active in this stage of disagreement, when an individual is in a state of moral conflict the theory is applied to regulate, find a balance, and to have peace of mind (Benoit, 2012). Individuals come upon countless situations throughout life when a complicated decision must be made; often times a person will even go against spiritual and moral beliefs when sensing external pressure. Moral and cognitive maturity along with a strong sense of self will assist on a logical decision. Identify the Situation Individual Consciously Made in a Behavior that Violated Cognitions Since the beginning of time, man expands all his mental facilities and physical limitations to discover the meaning of life and search to discover, when life begins. Physicians, scholars, theologians, and lay people have spent...
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...Contents Chapter 1 - Introduction and Thesis Statement.........................................4 Chapter 2 – Consumer purchase decision process………........................5 Chapter 3 – Theory of consistence…………………………………………….6 3.1 Experiment…………………….............................................6 3.2 Theory of consistence and consumer behaviour...…....…..6 Chapter 4 – Cognitive dissonance……………………………………….…….7 4.1 Cognitive dissonance and consumer behaviour…..............7 Chapter 5 – Further reasons for irrational consumer behaviour………....8 3.1 Sunk cost effect………………......……………………..........8 3.2 Endowment effect…….………………......……………..........9 Chapter 6- Reasons for rational consumer behaviour……….....................9 Chapter 7- Conclusion..................................................................................10 Bibliography...................................................................................................12 Affidavit..........................................................................................................13 2 Chapter 1 Introduction Economic behaviour has long been defined as a rational and cognitive process. This idea assumes that decisions made by humans are based up on functional arguments and information. But many researchers discovered that human behaviour and the process of decision-making is not merely linked to rational aspects. Everyone knows the situation when you have been shopping and find a suit or dress...
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...going to answer about consumer behavior. 1. Explain the consumer’s post-purchase evaluation process. A consumer looks at a lot before making a purchase, the first thing is, if the product is what they want, and need. Depending on what they are purchasing if it will fit their style. The consumer buying decisions have three categories routine response, limited decisions making and extensive decision making. 2. What is Cognitive dissonance? When people recognize inconsistency between their values or opinions and their values or opinions and their behavior, they tend to feel an inner tension. An example of this would be the advantages and disadvantages of owning a smaller car one advantage would be better gas mileage to disadvantage would be comfort and room. 3. Recall an occasion when you experience cognitive dissonance about a purchase. Describe the event and explain what you did about it. The only thing I can think that would be close to this is I used to get my nails done, but when my finances changed because of the cost I had to stop having them done. I only buy the necessities. I have always watched my spending I don’t mind depending on the product paying a little more for a better product. 4. Name at least two particular products or services that are at higher risk of causing cognitive dissonance. Why? I would say buying a car would be one product that would cause cognitive dissonance. With the high gas prices everyone wants a vehicle that is economical...
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...Stimuli • Environmental Forces BUYER’S BLACK BOX • Buyer’s decision process • Buyer’s characterist ics Buyer Responses • Buying attitude and preference • Purchase behavior (what, when, where, and how much) • Relationship behavior with brand and company Five Stages in the Consumer Decision Process Need recognition Information search Evaluation of alternatives Purchase decision Class Discussion: Customer Needs • What do parents-to-be need? • How can a company meet their important needs? Identify and Evaluate Alternatives Example: Brand Choice of Your Computer Purchased Recently Company: What can you do? Dear Company, We’re sorry to let you know your brand is not in our evoked set. To: The Company Yours sincerely, Your target customers Question: • What can a company do if its brand is NOT in the evoked set of the target consumers? – Inept set (avoided alternatives) – Inert set (backup alternatives) – Unawareness set Example: A customer’s evaluation of 3 computer brands • Which brand would this consumer most likely choose to purchase? • Which brand would this consumer least likely choose to purchase? Attributes (Criteria) Importance Weight (Sum = 1.0) Evaluation on the Performance of Alternative Computer Brands (Score: 1-7) Evaluation of Alternatives Brand A Price Speed Warranty Size Brand B 6 3 5 6 Brand C 2 7 4 7 0.2 0.5 0.1 0.2 4 6 5 4 Purchase Decision Stage: In-Store Influences that Affect Brand Choice Point-ofPurchase...
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...disposing of products and service, including the decision processes that precede and follow these actions”. Moreover, the consumer behavior display in searching for purchasing, using, evaluating, experiences, and idea which they expect will satisfy their needs. Therefore, knowing the factors which influence the buying behavior could increase the sales volume. The consumer behavior is an important factor to indicate the decision making process in buying a car. The buying behavior would influenced by the marketers. The job of the marketers is to “think what customer want” and to guide the company into developing offers, which are meaningful and attractive to target customers and creating solutions that deliver satisfaction to the customers, make profits to customer and benefits to the stakeholders. 2.0 Consumer purchases decision process In the role of consumer, they constantly face choices like how much to spend, what product to acquire, and where to purchase the product. Marketer need to understanding of how these decisions are in order to develop appropriate marketing strategies. The consumer buying decision process comprises five stages: problem recognition, information search/ search for alternatives, evaluation of alternatives, purchase decision, and post-purchase evaluation. The buying decision process is influenced by psychological factors, situational factors, and also social factors. This consumer buying decision process mentions about whether to purchases,...
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...The Marketers To Overcome The Cognitive Dissonance Of Customers Subject : OB Submission Date : 25th October Class : B-1(Shift-I) Submitted To : No. Submitted By : Group members Shaikh Mo.Farhan Solanki Snehal Vasani Tushar Parmar Paras Dhanani Nilesh Rana Vinus Safiwala Sanjay Timbadiya Viren Roll No. 82 87 95 61 102 110 114 98 Roshni Singh 1 2 3 4 5 6 7 8 Cognitive Dissonance No. 1 2 3 4 5 6 7 Introduction Theory & Research Applications of Research Overcoming Dissonance Cognitive Dissonance in Advertisement Five Advertisements which shows overcomes of CD by Marketers How to sale more with Cognitive Dissonance Particulars Page No. Introduction In psychology, cognitive dissonance is the discomfort experienced when simultaneously holding two or more conflicting cognitions: ideas, beliefs, values or emotional reactions. In a state of dissonance, people may sometimes feel "disequilibrium": frustration, hunger, dread, guilt, anger, embarrassment, anxiety, etc. The phrase was coined by Leon Festinger in his 1956 book When Prophecy Fails, which chronicled the followers of a UFO cult as reality clashed with their fervent belief in an impending apocalypse. Festinger subsequently (1957) published a book called A Theory of Cognitive Dissonance in which he outlines the theory. Cognitive dissonance is one of the most influential and extensively studied theories in social psychology. The theory of cognitive dissonance in social psychology proposes that people...
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...Study Notes: Marketing Buyer behaviour - The decision-making process How do customers buy? Research suggests that customers go through a five-stage decision-making process in any purchase. This is summarised in the diagram below: This model is important for anyone making marketing decisions. It forces the marketer to consider the whole buying process rather than just the purchase decision (when it may be too late for a business to influence the choice!) The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers often skip or reverse some of the stages. For example, a student buying a favourite hamburger would recognise the need (hunger) and go right to the purchase decision, skipping information search and evaluation. However, the model is very useful when it comes to understanding any purchase that requires some thought and deliberation. The buying process starts with need recognition. At this stage, the buyer recognises a problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to a marketing stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee and chocolate muffins). An “aroused” customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If not, then the process of information search begins. A customer...
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...cognitive dissonance in case of a luxurious restaurant like Kozmo? Answer: In simple Psychology, cognitive dissonance refers to conflicting attitudes, behaviours or beliefs. The theory of cognitive dissonance states that when someone holds two or more conflicting attitudes or beliefs about one product or service, cognitive dissonance occurs. It is most likely to happen after a customer makes a purchase. The greater the level of commitment the greater is the risk for dissonance. The scenario depicts that Kozmo is a luxurious restaurant which is new in the town and offers a unique dining experience for the customers. Here the level of commitment is higher than the usual restaurants as it is costly to dine at the Kozmo and therefore there is always a chance of dissonance on the part of the customer. In a competitive market, consumers usually have more than one choice to select products and services from. The potential customers then weigh the probable pros and cons of each choice before making a purchase decision. The chance of confliction in the consumer’s mind increase with the amount of attractive choices available and thus the chance of cognitive dissonance also increases. All major purchases result in some sort of discomfort caused by post purchase conflict or cognitive dissonance. Now a number of factors may cause a cognitive dissonance in case of a luxurious restaurant like the Kozmo Lounge. For example, If the quality of the food falls short of the consumer’s decision the...
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...Issue Analysis: Cognitive Dissonance PSYCH/555 April 22, 2013 Dr. Keisha Anthony Issue Analysis: Cognitive Dissonance “Festinger's (1957) cognitive dissonance theory suggests that we have an inner drive to hold all our attitudes and beliefs in harmony and avoid disharmony (or dissonance)” (McLeod, 2008). Issue 5: Does Cognitive Dissonance Explain Why Behavior Can Change Attitudes debates the cognitive dissonance theory with one of the authors challenging the theory by claiming that self-perception is a better explanation as to why people behave differently once they have acted outside of their norm as most people try to find some sort of consistency between their actions and their attitudes. Consonant and dissonant cognitions both affect the attitude on opposite ends of a spectrum. As with consonant cognitions the behavior matches the attitude and with dissonant cognitions have behaviors that conflict with their attitudes. One of the most powerful influences on attitude change is the motivation of people to maintain that consistency between their attitudes and behaviors. Although the cognitive dissonance theory is studied and utilized by psychologists all over the world, there are some who reject this theory and believe that self-perception is what enables people to decide on their attitudes, emotions, and behaviors because they are able to cast judgment upon themselves based on their behavior in different situations. Summary of both Arguments in Issue 5 Festinger...
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...Post Purchase Behavior * Post Purchase Behavior is the period of reflection and accordingly the behaviour the buyer undergoes after purchasing a product. A Positive Experience is the key for Marketing Managers. Cognitive Dissonance is a situation of conflicting beliefs, attitudes. Consistency among buyers cognitions is possible and is done very well through fords case. But the factors that add to the cognitive dissonance and how ford has countered it would be the application to fords post purchase behaviour. These are also the factors that have motivated customers to continue purchasing the ford product. These are also the factors that contribute to the ATTENTION, EXPOSURE and the PERCEPTION of the product. * Quantity and quality of alternatives - the Renaultsport Clio, Peugeot 208 GTi, MINI Cooper S and Audi S1 are the alternatives. * The other alternatives do not have better features- The fact that it undercuts its rivals – the Renaultsport Clio, Peugeot 208 GTi, MINI Cooper S and Audi S1 by a significant margin. Despite this buyers felt that the st did not have enough break horse power but this was countered by ford as it released a 217bhp version of the st for 600£ still priced lower than its alternatives. * High Involvement Decision-There is high purchasing anxiety when buying a car, therefore it is a high involvement a decision also there is a certain amount of financial commitment involved towards the product when buying the ford fiesta st, the target...
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...INTRODUCTION We all have to make choices. One of those most important decisions made in our life are based on the market - buying goods. No one buy goods unless they have a problem, a need or a want. The Consumer Decision Making Model can be applied with any economics decision you have to make. The goal in creating this model was to analyze how individuals sort through facts and influences to make decisions that are logical and consistent for them. Think like an economist with this convenient tool. The CDP model consists of seven major stages: Need recognition, search for information, pre-purchase evaluation of alternatives, purchase, consumption, post-consumption evaluation and divestment. The aim of this paper is to discuss these processes with reference to a product and analyze the reason why marketers should understand the CDP model. 1. Need recognitions Need recognitions is the most important factor which leads to buying of products and services. Need in fact is the catalyst which triggers the buying decision of individuals. It occurs when an individual senses a different between what he or she perceives to be the ideal versus the actual state of affairs. Need recognition depends on how much discrepancy exists between the actual state (the consumer’s current situation) and the desired state (the situation the consumer want to be in). Consumer buy things when they believe a product’s ability to solve a problem are worth more than the cost of buying it. Imagine having...
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...countries today? Consumer Behavior: The action a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions. Types of consumer behavior: Routine Response Behavior, Limited Decision Making Behavior, Extensive Decision Making Behavior, Impulse Buying Behavior. Groupon: Uses consumers impulse buying to their advantage. 2) What is the Groupon Promise? How does the Groupon Promise affect a consumer's perceived risk and cognitive dissonance? "Nothing is more important to us than treating our customers well." "If you ever feel like Groupon let you down, give us a call and we'll return you purchase-sample as that." Cognitive Dissonance and Perceived Risk: When you ask yourself if you made the right decision or buy the right product. 3) Describe the five-stage purchase decision process for a typical Groupon user. Problem recognition: Perceiving a need. Information search: Seeking value. Evaluation of alternatives: Assessing value. Purchase decision: Buying value. Post-purchase behavior: Value in consumption or use. 4) What are possible psychological and sociological influences on the Groupon consumer purchase decision process? Psychological influences: Explain why and how consumers behave the way that they do. Perception: The process of selecting, organizing and interpreting inputs to produce meaning. Sociological Influences: Evolve from a consumers formal and informal...
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...HOLIDAY DECISION MAKING: PROCESS OF LEISURE DISCOVERY AND ADAPTABILITY. The following essay attempts to discuss and critically evaluate the traditional problem solving, cognitive model of consumer decision making process with that of holiday decision making. The writing begins with the introduction phase which discusses the traditional model of consumer decision making process. The following subsection discusses the sequential stages involved in the traditional consumer decision making, following is a comparative analysis between holiday decision making and traditional consumer decision making based on the stages involved in traditional consumer decision making. A conclusion that summarizes this study follows thereafter. I. INTRODUCTION “Consumer behavior reflects the totality of consumers’ decisions with respect to the acquisition, consumption and disposition of goods, services, activities, experiences, people and ideas overtime.” (Wayne D. Hoyer, Deborah J. Maclnnis 2008). This means that as much as the consumer will purchase a certain product e.g. soap, based on his preference of brands, he may also purchase a product such as a book just because it has been written by a popular author. Consumer decision making is about market choice behavior where consumers must make a decision between two or more competing alternatives, and thereafter decide on whether to purchase the alternative. The consumer decision making process is the stages that a consumer goes through in order...
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...Relationship Between Unplanned Buying And Post Purchase Regret Introduction: The theory of cognitive dissonance was developed in 1957 by Leon Festiner. Festinger describes cognitive dissonance as a psychological state which results when a person perceives that two cognitions both of which he believes to be true, do not “fit” together; that is, they seem inconsistent. The resulting dissonance produces tension, which serves to motivate the individual to bring harmony to inconsistent elements and thereby reduce psychological tension (Loudon, Bitta 2006) Regret arises from individuals expending cognitive efforts to consider the chosen option against the rejected options (Inman, Dyer, and Jia 1997). Individuals must think in order to feel regret. For individuals to experience regret, they have to cognitively process and cross-compare one option (chosen) to another option (foregone). If the result of the comparison is perceived to be unfavourable (i.e. the foregone option is perceived to be better than the present option), then individuals are prone to feeling regret over their actions. According to Sugden (1985) regret has been known to be a painful sensation that arises as a result of comparing ‘what is’ with ‘what might have been. Regrets about what one has failed to do or what one has done are common. It has been defined as the negative cognitively-based emotion that we experience when realizing or imagining that our present situation would have...
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