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Amity Business School
Module II (Content)
• Consumer as an Individual
• Perception, Imagery
• Brand Loyalty
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Module-II (Objectives)
The Consumer as an
Individual - Motivation
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Learning
Learning
Goal
Goaloror
Needs
Needs need
need
wants,
wants,and
and Tension
Tension Drive
Drive Behavior
Behavior fulfill-
fulfill-
desires
desires ment
ment
Cognitive
Cognitive
processes
processes
Tension
Tension
reduction
reduction
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Goals
• Generic Goals
– the general categories of goals that consumers
see as a way to fulfill their needs
– e.g., “I want to get a MBA degree.”
• Product-Specific Goals
– the specifically branded products or services
that consumers select as their goals
– e.g., “I want to get an MBA in Marketing from
Amity Business School.”
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Achieving Goals by
Subscribing to a
Magazine
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Changing
Consumer
Needs
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Methods by which
people mentally
Defense redefine frustrating
Mechanism situations to protect
their self-images and
their self-esteem.
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Defense
Mechanisms
• Aggression • Projection
• Rationalization • Autism
• Regression • Identification
• Withdrawal • Repression
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Arousal of Motives
• Physiological arousal
• Emotional arousal
• Cognitive arousal
• Environmental arousal
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Murray’s List of
Psychogenic Needs
Needs Associated with Inanimate Objects:
Acquisition, Conservancy, Order, Retention, Construction
Murray’s List of
Psychogenic Needs
Sado-Masochistic Needs :
Aggression, Abasement
Motivation Research
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Means-End Analysis
Most Ads
appeal to
Multiple
Motives
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Motivation Conflict
• Approach-Approach Conflict – choice between
2 attractive alternatives.
• Approach-Avoidance Conflict – both + and –
consequences in purchase of particular product.
• Avoidance-Avoidance Conflict – choice
between 2 undesirable alternatives.
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Appeal to
Self-
Actualization
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A Trio of Needs
• Power
– individual’s desire to control environment
• Affiliation
– need for friendship, acceptance, and belonging
• Achievement
– need for personal accomplishment
– closely related to egoistic and self-actualization needs
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Appeal to Power
Needs
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Appeal to
Affiliation
Needs
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Appeal to
Achievement
Needs
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Personality and
Consumer Behavior
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Theories of Personality
• Freudian theory
– Unconscious needs or drives are at the heart of
human motivation
• Neo-Freudian personality theory
– Social relationships are fundamental to the
formation and development of personality
• Trait theory
– Quantitative approach to personality as a set of
psychological traits
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Freudian Theory
• Id
– Warehouse of primitive or instinctual needs for
which individual seeks immediate satisfaction
• Superego
– Individual’s internal expression of society’s moral
and ethical codes of conduct
• Ego
– Individual’s conscious control that balances the
demands of the id and superego
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Ad
Portraying
the Forces
of the Id
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Gratification ID
ID EGO
EGOSystem
System
System
System11 33
SUPEREGO
SUPEREGO
System
System22
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Tortilla Chips:
Perfectionist, high expectations, punctual, conservational
Pretzels:
Lively, easily bored, flirtatious, intuitive
Snack Crackers:
Rational, logical, contemplative, shy, prefers time alone
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Ad Applying
Horney’s
Detached
Personality
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Trait Theory
• Personality theory with a focus on
psychological characteristics
• Trait - any distinguishing, relatively
enduring way in which one individual differs
from another
• Personality is linked to how consumers
make their choices or to consumption of a
broad product category - not a specific
brand
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Dogmatism
• Consumers low in dogmatism (open-minded)
are more likely to prefer innovative products to
established or traditional alternatives
• Highly dogmatic consumers tend to be more
receptive to ads for new products or services
that contain an appeal from an authoritative
figure
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Ad
Encouraging
New Product
Acceptance
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Social Character
Inner-Directed Other-Directed
• Consumers who tend • Consumers who tend
to rely on their own to look to others for
inner values direction
• More likely to be • Less likely to be
innovators innovators
• Tend to prefer ads • Tend to prefer ads
that stress product that feature social
features and benefits acceptance
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A personality trait
characterized by the need
for varied, novel, and
Sensation
complex sensations and
Seeking
experience, and the
(SS)
willingness to take physical
and social risks for the sake
of such experience.
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Targeting
Visualizers
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Ad Targeting
Verbalizers
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Materialistic People
Consumer Ethnocentrism
Brand Personality
• Personality-like traits associated with brands
• Volvo - safety
• Perdue - freshness
• Nike - the athlete
• BMW - performance
• Levi’s 501 - dependable and rugged
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A Brand Personality Framework
Brand
Personality
continued
Human, exciting, hot, • Makes food “smell” better
passionate, strong • Coffee in a red can be perceived as “rich”
RED • Women have a preference for bluish red
• Men have a preference for yellowish red
• Coca-Cola “owns” red
Powerful, affordable, • Draws attention quickly
ORANGE
informal
Informal and relaxed, • Coffee in a dark-brown can was “too strong”
BROWN
masculine, nature • Men seek products packaged in brown
Goodness, purity, • Suggests reduced calories
chastity, cleanliness, • Pure and wholesome food
WHITE
delicacy, refinement, • Clean, bath products, feminine
formality
Sophistication, power, • Powerful clothing
BLACK authority, mystery • High-tech electronics
SILVER, Regal, wealthy, stately • Suggests premium price
GOLD
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Different Self-Images
Ideal Social
Social Self-Image
Self-Image
Expected
Self-Image
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Ad
Contemplates
Consumer Self-
Image
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Virtual Personality
• Online individuals
have an opportunity to
try on different
personalities
• Virtual personalities
may result in different
purchase behavior
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Consumer Perception
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Elements of Perception
• Sensation
• Absolute threshold
• Differential threshold
• Subliminal perception
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Increased
Sensory
Input
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Marketing Applications
of the JND
• Need to determine the relevant j.n.d. for their
products
– so that negative changes are not readily
discernible to the public
– so that product improvements are very apparent to
consumers
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Gradual Changes in
Brand Name Fall
Below the J.N.D.
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Perception of very
weak or rapid stimuli
Subliminal
received below the
Perception
level of conscious
awareness.
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Subliminal Perception
Subliminal
Embedding
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Aspects of Perception
Selection
Organization
Interpretation
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Perceptual Selection
• Selective Exposure
• Selective Attention
• Perceptual Defense
Gestalt • Perceptual Blocking
Psychology
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The Unexpected
Attracts
Attention
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Principles of Perceptual
Organization
• Figure and ground
• Grouping
• Closure
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• Physical Appearances
• Stereotypes
• First Impressions
• Jumping to Conclusions
• Halo Effect
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Using Imagery
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Establishing a specific
image for a brand in
Positioning
relation to competing
brands.
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Repositioning
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Positioning Techniques
• Umbrella • Conveying a
Positioning Product Benefit
• Positioning • Taking an Unowned
Against Position
Competition • Positioning for
• Positioning Based Several Positions
on a Specific • Repositioning
Benefit
Apple’s 1984 Ad Positions
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A research technique
that enables marketers
to plot graphically
Perceptual
consumers’ perceptions
Mapping
concerning product
attributes of specific
brands.
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Perceptual Mapping
Fashion Coverage
Fashion
Splash
More More
Copy Artwork
Crash
Bash
Splash
Club Coverage
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• Satisfaction-based Pricing
• Relationship Pricing
• Efficiency Pricing
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Acquisition-Transaction Utility
Perceived Quality
Characteristics of Services
• Intangible • Perishable
• Variable • Simultaneously
Produced and
Consumed
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Ad
Emphasizing
Tangible
Cues
Conceptual Model of the Consequences ofSchool
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Service Quality
Service Behavioral
Quality Intentions +$
Ongoing Revenue
Superior Favorable Remain Increased Spending
Price Premium
Referred Customers
Behavior Financial
Consequences
-$
Decreased Spending
Inferior Unfavorable Defect Lost Customers
Costs to Attract
New Customers
Focus of present study
Empirical links demonstrated in macro studies
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Objective
Price
+ Perception +
of Price
Perceived Perceived
Quality Sacrifice
Perceived
+ Value -
+ -
Willingness
to Buy
A. Conceptual Relationship of Price Effect
continued Amity Business School
Brand Store
Name Name Objective
Price
Perceived Risk
Types
The degree of
uncertainty • Functional Risk
perceived by the • Physical Risk
consumer as to the • Financial Risk
consequences • Psychological Risk
(outcome) • Time Risk
of a specific
purchase decision.
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• Seek Information
• Stay Brand Loyal
• Select by Brand Image
• Rely on Store Image
• Buy the Most Expensive Model
• Seek Reassurance
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Consumer Learning
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Importance of Learning
Learning Theories
• Behavioral Theories: • Cognitive Theories: A
Theories based on the theory of learning based
premise that learning on mental information
takes place as the result processing, often in
of observable response to problem
responses to external solving.
stimuli. Also known as
stimulus response
theory.
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A process by which
individuals acquire the
purchase and
Consumer
consumption knowledge
Learning
and experience
that they apply to
future related behavior.
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Learning Processes
• Motivation
• Cues
• Response
• Reinforcement
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A positive or negative
outcome that
influences the
likelihood that a
Reinforcement specific behavior will
be repeated in the
future in response to a
particular cue or
stimulus.
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• Classical Conditioning
• Instrumental Conditioning
• Modeling or Observational Learning
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A behavioral learning
theory according to
which a stimulus is
paired with another
Classical
stimulus that elicits a
Conditioning
known response that
serves to produce the
same response when
used alone.
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A behavioral theory of
learning based on a trial-
and-error process, with
Instrumental
habits forced as the result
(Operant)
of positive experiences
Conditioning
(reinforcement) resulting
from certain responses or
behaviors.
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Unconditioned Stimulus
Meat paste
Unconditioned Response
Salivation
Conditioned Stimulus
Bell
Unconditioned Stimulus
Dinner aroma
Unconditioned Response
Salivation
Conditioned Stimulus
6 o’clock news
Neo-Pavlovian Conditioning
Strategic Applications of
Classical Conditioning
• Repetition
• Stimulus Generalization
• Stimulus Discrimination
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Repetition
Figure 7.3 Cosmetic
• Repetition increases Variations in Ads
strength of
associations and
slows forgetting but
over time may result in
advertising wearout.
• Cosmetic variations
reduce satiation.
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Substantive
Variations
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Three-Hit Theory
Product Line
Extension
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Product
Category
Extensions
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Shoe
Manufacturer
Licenses
Its Name
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Positioning
Differentiation
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Stimulus
Discrimination
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Try Unrewarded
Brand B Tight in seat
Stimulus
Situation
Try Unrewarded
(Need good-
looking jeans) Brand C Baggy in seat
Try Reward
Brand D Perfect fit
Repeat Behavior
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Instrumental Conditioning
Reinforcement
• Punishment
– Choose reinforcement rather than punishment
• Extinction
– Combat with consumer satisfaction
• Forgetting
– Combat with repetition
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A process by which
individuals observe the
behavior of others, and
Observational
consequences of such
Learning
behavior. Also known
as modeling or
vicarious learning.
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Consumers
Learn by
Modeling
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Appeal to
Cognitive
Processing
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A cognitive theory of
human learning
patterned after computer
Information information processing
Processing that focuses on how
information is stored in
human memory and
how it is retrieved.
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Working
Working
Memory
Memory Long-
Long-
Sensory Sensory
Sensory (Short-
(Short- term
term
Input Store
Store Rehearsal Encoding Retrieval
term
term Store
Store
Store)
Store)
Retention
• Information is stored in
long-term memory
– Episodically: by the order in
which it is acquired
– Semantically: according to
significant concepts
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A theory of consumer
learning which postulates
that consumers engage in
a range of information
Involvement
processing activity from
Theory
extensive to limited
problem solving,
depending on the
relevance of the purchase.
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Encouraging
Right and Left
Brain
Processing
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Peripheral
Route to
Persuasion
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Involvement
HIGH LOW
Peripheral
Central Route
Route
Message
Peripheral
Arguments
Cues Influence
Influence
Attitudes
Attitudes
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Starch
Readership
Scores
Measure
Learning
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• Cognitive
• Affective
• Conative
• Action
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Repeat Patronage
High Low
Latent
High Loyalty
Relative Loyalty
Attitude Spurious No
Low
Loyalty Loyalty