BMGT451 Study Guide Basic Research Behavioral issues broader not specific business issues Applied Research specific company issue choice between two ads or whether changes have increased customer satisfaction Key Methodologies for Generating Consumer Insights Direct Questioning interview survey Observation Experiments The Psychology Underlying the Consumer Decision Process Need Recognition Attention and Perception Information Search Learning and Memory Choice purchase Social influence purchase environment Post choice evaluation Brand loyalty post purchase satisfaction Attention Voluntary we pay attention Involuntary something grabs our attention Stroop Effect Colors vs words Stimulus Factors Novelty Color Attractive Stimulus Incomplete Stimulus Zeigarnik Effect ingle ells Position in visual field Slipstreaming off of interest in current event Perception Brand Perceptions Coke vs Generic Perception is reality for consumers Perceptions of Colors Colors are seen as warm or cool mainly because of long held sometimes universal associations Red has been known to stimulate the senses and raise the blood pressure Blue has the opposite effect and calms the mind Perceptions of Shapes People poured more into short and wide glasses than tall narrow glasses People erroneously perceived that they poured more into the tall narrow glass Perceptions of Word Sounds Weber s Law the higher the initial level of an attribute the greater the amount that the attribute must be changed before people will notice the change above or below just noticeable difference depending on the objective Learning Low involvement product vs high involvement product Consumer knowledge comes from Direct Experience Indirect Experience Categorization helps consumers learn about an unfamiliar product Types of Conditioning Classical Conditioning use existing associations to create positive or negative associations for product or brand Operant instrumental conditioning use outcomes of behaviors to create positve or negative associations positive negative reinforcement Memory Information that comes in through our senses echoic memory things we hear iconic memory things we see Short Term Memory Currently activated portion Limited Capacity the magic number chunking p 313 Long Term Memory Permanently stored knowledge Episodic memory knowledge about ourselves and our own experiences Semantic memory knowledge about the world Procedural memory knowledge about how to do things Very large storage capacity Information is not lost but sometimes cannot be retrieved Perceptual Maps most important dimension to consumers on the x axis and the second most important on the y axis Motivation and Involvement Maslow s Hierarchy of Needs 1 Self actualization 2 Esteem 3 Belonging 4 Safety 5 Physiological Maguire s Psychological Motives Cognitive Preservation Motives Need for Consistency Need for Attribution Need to Categorize Cognitive Growth Motives Need for Autonomy Need for Stimulation Teleological Need Utilitarian Need Affective Preservation Motives Need for Tension Reduction Need for Expression Need for Ego Defense Need for Reinforcement Affective Growth Motives Need for Assertion Need for Affiliation Need for Identification Need for Modeling Consumption Related Motives Hedonic Goal Focuses on creating certain feelings and emotions Social Goal Sending messages to other people Utilitarian Goal Focuses on usefulness functionality getting the job done solving a problem Manifest Motives people will tell you Latent Motives you have to dig deeper Affect and Decision Making People make inferences about a target based on whatever they happen to be feeling People said their lives were overall worse in a survey when it was raining People who are in a good mood are more impulsive process information less carefully make more optimistic predictions about the future than people who are in a bad or neutral mood People also engage in mood congruent recall such that those in a good mood recall more previous examples of good events than those in a bad mood who recall more negative events than those in a good mood What puts people into a good mood Social interaction Receiving a free gift Flow people s well being is highest when they experience a sense of losing themselves in a challenging activity which they have the skills to complete If the task is not challenging or people do not feel that they have the skills to complete it they can feel bored or frustrated How to control disgust Consumer disgust can be a powerful emotion ex People get disgusted by a given product when it seems contaminated from having touched something else disgusting How to Minimize Consumer Regret Focus on Feasibility People focus on what is desirable when thinking abstractly about the distant future People focus on what is feasible when thinking concretely about the immediate future This can lead to preference reversals as people choose the desirable option but later wish they had chosen the feasible outcome Attitude Attitude Components Cognitive Component What do people believe Affective Component What do people feel positive negative Behavioral Component What will people do Situational Influences on Consumer Behavior Situational Influences All those factors particular to a time and place of observation that do not follow from knowledge of personal and stimulus attributes and that have a demonstrable and systematic effect on current behavior Examples of Situational Influences The physical environment Music Lighting Mirrors Other ambiance factors other available products reference points timing of choices the social environment Impact of Other Available Products