Consumer Behavior: Chapter 4, Solomon

CONSUMER BEHAVIOR
MAN - 432
Chapter 4, Solomon
PROJECT
 6 questions, choose any one
 A question cannot be chosen by more than 2 groups (6*2 + 1)
 10 (recorded presentation) + 5 (live Q&A) minutes
 It’s a teamwork. So, everyone in the team will get equal marks.
 Tentative distribution: 35 (mid term) 35 (end term) 30 (project)
 Laptops/Tabs allowed for the exam. Do you want to carry them?

REVISION
 Perception = Exposure  Attention  Interpretation
 JND
 Attention – personal and stimulus selection factors
 Gestalt principles
 Perceptual map
SOME DEFINITIONS
 Learning
 A change in behavior resulting from the interaction between a person and a stimulus
 A relatively permanent change in behavior caused by experience
 Intentional and Unintentional (incidental) learning
 Behavioral and Cognitive learning theories

BEHAVIORAL LEARNING THEORIES
Stimulus Response
Mind
 Practitioners favor these theories. Why?
 Ivan Pavlov
 Classical Conditioning
 Repetition
 Nonsense syllables
 Advertising wear-out
 Extinction
 Titan 1, Titan 2, Titan 3, Titan 4

 An important aspect of branding: transfer of meaning from an
unconditioned stimulus to a conditioned stimulus

 Stimulus Generalization/Halo/Me-too Effect
 Family branding – P&G, Meta, Apple
 Line/Brand extension – Parker fountain pen, Parker 5th™, ballpoint pen or
rollerball pen/ Mercedes Apparel
 Licensing – Brand Ambassador
 Look-alike packaging – Doppelganger brands
 Stimulus Discrimination - DEISEL

 Instrumental Conditioning or Operant Conditioning
 Perform the behavior that gets positive outcomes, and avoid the one with
negative outcomes – Goal Oriented
 B.F. Skinner
 Generally voluntary, deliberate, and complex compared to involuntary and
simple classical conditioning
 Shaping process = rewarding intermediate actions. Incremental steps.

 Reinforcement Types
 Positive reinforcement - Starbucks
 Negative reinforcement - Zazoo
 Punishment - Organ Donation
 Post purchase dissonance
 Extinction Uber
 Reinforcement schedules
 Fixed-Interval Reinforcement – Monthly coupons

Number of time Number of
 Variable-Interval Reinforcement – “Deal of the Day” periods responses
 Fixed-Ratio Reinforcement – First 100 users/week Fixed Fixed-Interval Fixed-Ratio
 Variable-Ratio Reinforcement – “Better luck next time”

Variable Variable-Interval Variable-Ratio
COGNITIVE LEARNING THEORY
 People are problem-solvers who actively use information from the world around
them to master their environments
 Observational (Vicarious) learning – Alexa
 Modeling - Blippi
MEMORY
 Memory is a process of acquiring information and storing it over time so that it will
be available when we need it Encoding  Storage  Retrieval

ENCODING
 Sensory Meaning
 Semantic Meaning
 Episodic Memories
 Flashbulb memories
 Narratives
MEMORY SYSTEMS
 Sensory Memory
 Short-Term Memory (STM)
 Like a RAM
 Workbench or working memory
 Chunking: A chunk is a configuration that is familiar to the

person and that he or she can think about as a unit, e.g.,
010114020104, Airtel Ad
 LTM
 Elaborative Rehearsal: Thinking about the meaning of a

stimulus and relating it to other information already in
memory
STORING THE INFORMATION
 Multiple-Store (distinct storage systems) vs Activation
Models (interdependent storage systems)
 Associative Networks or Semantic Networks
 A network of mental pathways linking all knowledge
within memory - Knowledge Structures

 Nodes
 Links
 Depends on our unique experiences with the brands and
products
 Consideration Set or Evoked Set?

Axe/Lynx
 Spreading Activation
 Activating one concept through another
 Type of meaning  How we store
 Type of meaning  Activation of
meaning
 Rumination - Inside Out

 Levels of Knowledge
 Meaning = individual node
 Proposition = group of meanings
A mental structure of preconceived ideas, a framework representing some aspect of the

 Schema = group of propositions
world, or a system of organizing and perceiving new information --- From L03
 Script: a sequence of expected events
 Service Scripts: scripts that guide our behavior in commercial settings Uber Dad
RETRIEVING THE INFORMATION
 Psychological or physiological factors
 Grey matter, training, age
 Situational Factors
 First mover, nature of competition, social movements
 Message
 Spacing effect – high recall when message is spread over time than repeated in short duration
 Creativity, shock, placing amongst other messages

 State-dependent Retrieval: Similar internal  Salience
state at the time of learning  Contrast with the environment
 Familiarity  The von Restorff Effect: Novelty
 Automaticity: ‘Familiarity breeds contempt’ increases recall

 Mystery, shock value
 Highlighting Effect: More efforts required
by the latecomers  Type of Emotions
 Mixed
 Visual vs verbal
 Unipolar
NOSTALGIA
 The bittersweet emotion that arises when we view the past with both sadness
and longing
 Stranger Things
 A retro brand is an updated version of a brand from a prior historical period
 Michael Keaton
 Old Spice
 Products and brand serve as ‘memory markers’ that bind us to the stable past
 Spontaneous recovery – When a stimulus evokes a weakened response even
years after we first perceived it, e.g., a song, fragrance

 Forgetting
 Decay – of structural changes produced by learning
 Interference
 Retroactive
 Proactive
 Loss of links and nodes in the associative network

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CONSUMER BEHAVIOR

 Laptops/Tabs allowed for the exam. Do you want to carry them?

 Intentional and Unintentional (incidental) learning

 Behavioral and Cognitive learning theories

 Practitioners favor these theories. Why?

 Titan 1, Titan 2, Titan 3, Titan 4

 An important aspect of branding: transfer of meaning from an

unconditioned stimulus to a conditioned stimulus

 Family branding – P&G, Meta, Apple

 Line/Brand extension – Parker fountain pen, Parker 5th™, ballpoint pen or

rollerball pen/ Mercedes Apparel

 Licensing – Brand Ambassador

 Look-alike packaging – Doppelganger brands

 Stimulus Discrimination - DEISEL

 Instrumental Conditioning or Operant Conditioning

negative outcomes – Goal Oriented

 Generally voluntary, deliberate, and complex compared to involuntary and

simple classical conditioning

 Shaping process = rewarding intermediate actions. Incremental steps.

 Positive reinforcement - Starbucks

 Negative reinforcement - Zazoo

 Punishment - Organ Donation

 Post purchase dissonance

 Fixed-Interval Reinforcement – Monthly coupons

 Fixed-Ratio Reinforcement – First 100 users/week Fixed Fixed-Interval Fixed-Ratio

 Variable-Ratio Reinforcement – “Better luck next time”

them to master their environments

 Observational (Vicarious) learning – Alexa

be available when we need it Encoding  Storage  Retrieval

 Short-Term Memory (STM)

 Workbench or working memory

 Chunking: A chunk is a configuration that is familiar to the

 Elaborative Rehearsal: Thinking about the meaning of a

 Multiple-Store (distinct storage systems) vs Activation

Models (interdependent storage systems)

 Associative Networks or Semantic Networks

 A network of mental pathways linking all knowledge

within memory - Knowledge Structures

 Depends on our unique experiences with the brands and

 Consideration Set or Evoked Set?

 Activating one concept through another

 Type of meaning  How we store

 Type of meaning  Activation of

 Rumination - Inside Out

 Meaning = individual node

 Proposition = group of meanings

A mental structure of preconceived ideas, a framework representing some aspect of the

 Script: a sequence of expected events

 Psychological or physiological factors

 Grey matter, training, age

 First mover, nature of competition, social movements

 Creativity, shock, placing amongst other messages

 State-dependent Retrieval: Similar internal  Salience

state at the time of learning  Contrast with the environment

 Familiarity  The von Restorff Effect: Novelty

 Automaticity: ‘Familiarity breeds contempt’ increases recall

by the latecomers  Type of Emotions

 A retro brand is an updated version of a brand from a prior historical period

 Spontaneous recovery – When a stimulus evokes a weakened response even