An all encompassing summary of the course Consumer Behaviour. Written in an organized, structured way with plenty of clear examples and visuals to guide you through the learning process.
This summary includes;
* all lectures
* all guest lectures
* the book Nudge by Thaler and Sunstein
* all...
CONSUMER BEHAVIOR
1. Introduction to consumer behavior....................................................................................... 2
1.1. What is consumer behavior?............................................................................................ 2
1.2. Why should we study consumer behavior?...................................................................... 3
1.3. What does the buyer’s decision process looks like.......................................................... 4
1.4. Perspective is everything..................................................................................................7
1.5. Having and being had.......................................................................................................8
1.6. Decision-making............................................................................................................... 8
2. Attitudes................................................................................................................................. 10
2.1. What are attitudes?.........................................................................................................10
2.2. Attitude-behavior change and how can we measure attitudes?..................................... 11
2.3. The bible app.................................................................................................................. 13
3. Neuromarketing..................................................................................................................... 14
3.1. People are irrational........................................................................................................14
3.2. People are predictably irrational..................................................................................... 14
3.3. Marketing applications.................................................................................................... 14
4. Emotions and motivations....................................................................................................16
4.1. What are emotions?........................................................................................................16
4.2. Theories of emotions...................................................................................................... 17
4.3. What are motivations?.................................................................................................... 19
4.4. Theories of motivation.................................................................................................... 19
5. Exposure, attention and perception.................................................................................... 22
5.1. Exposure.........................................................................................................................22
5.2. Attention..........................................................................................................................23
5.3. Perception.......................................................................................................................23
5.4. Memory...........................................................................................................................25
5.5. Implications for branding.................................................................................................25
5.6. From perception to cognition.......................................................................................... 26
6. Cognition: Heuristics and bias.............................................................................................28
7. Consumer Identities.............................................................................................................. 34
7.1. Personal and social identities......................................................................................... 34
7.2. Marketer’s perspective....................................................................................................35
7.3. Segmentation criteria......................................................................................................36
7.4. Psychological ownership................................................................................................ 38
8. Marketing in open source..................................................................................................... 40
9. Social marketing.................................................................................................................... 42
9.1. What is social marketing?...............................................................................................42
9.2. What are frequent techniques in social marketing?........................................................43
9.3. The charity market.......................................................................................................... 44
, 9.4. What is the value of public-private partnerships?........................................................... 44
10. Nudging................................................................................................................................ 46
10.1. What is nudging............................................................................................................ 46
10.2. What are frequent nudging techniques?.......................................................................48
10.3. Which nudges are used in real life?..............................................................................50
10.4. Sludge...........................................................................................................................52
10.5. Saving the planet.......................................................................................................... 53
11. Social influence....................................................................................................................56
11.1. Why so powerful?..........................................................................................................56
11.2. Mimicry..........................................................................................................................57
11.3. Social proof................................................................................................................... 57
11.4. Social identity through reference groups...................................................................... 58
11.5. weapons of influence or persuasion............................................................................. 59
12. Consumer culture................................................................................................................ 62
12.1. Culture.......................................................................................................................... 62
12.2. West versus East.......................................................................................................... 63
12.3. Implications for marketing.............................................................................................65
12.4. Fixed or dynamic (adaptive) ?...................................................................................... 66
13. Sustainability....................................................................................................................... 68
13.1. How and why do companies pursue sustainability?..................................................... 68
13.2. What are some challenges in pursuing sustainability?................................................. 68
13.3. Empowering sustainable behavior................................................................................69
13.4. Meat without animals.................................................................................................... 70
1
,1. Introduction to consumer behavior
1.1. What is consumer behavior?
= 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
→ interdisciplinary science: microeconomics, sociology, psychology and social psychology
Requirements fulfilled by the products I buy Requirements fulfilled as part of the shopping
Ex; healthy, durable, tasty, … process
Ex; variety, value, convenience, ..
CB as a process
1. Pre-purchase
2. Purchase
3. Post-purchase
CB as subjective and situational
1. Consumer: personal -, psychological-, social- and situational1 influences
2. Situational: 4 P’s
Customer value = consumer’s assessment of the overall capacity of offerings to satisfy needs
and wants
Value disciplines:
1. Best product: continuous innovation ex; Apple
2. Best total cost: efficient in reducing costs, lower price ex; RyanAir
3. Best total solution: tailor offering to needs ex; Dell, IBM
Sinek’s golden circle
● Inner circle: why? → mission, vision
● Middle: how?
● Outer: what? → product/service
Types of value
1. Utilitarian:
● Helps to accomplish tasks
● Ex; Ferrari takes you from A to B very fast
● Ex; Iphone lots of applications
2. Hedonic:
● Immediate gratification
● Relies on experience and emotion
● Ex; Ferrari is sexy
● Ex; Iphone nice design
3
,Importance of CB in marketing
● Ensures offering meets needs
● Facilitates creation of value
● Studies how consumers think, feel, influenced, …
● Improve campaigns to target customers better
1.3. What does the buyer’s decision process looks like
The buyer decision process // Customer purchase journey
1. Need recognition
● Diff between current and desired situation
● Cause: stimuli → internal vs external
● Want-got-gap
● ⇒ ! be aware of needs2
● ⇒ ! be aware of need inhibitors3
● ⇒ ! needs can be stimulated4
2. Information search
● Internal search: memory
● Personal sources: family and friends
● Commercial sources: advertising, salespeople
● Public sources: mass-media
● Personal experience: handling, using the product
● ! ranking of sources is diff for each culture
3. Pre-purchase evaluation of alternatives
● Funnel
● Non-compensatory models of choice
○ Conjunctive heuristics:
■ min req of all attributes
■ Ex; choose candy with min level of all nutritions
○ Disjunctive heuristics:
■ Min 1 attribute with min req
■ Ex; choose candy with min level of fat
○ Lexicographic heuristics:
■ Rank attributes based on importance
■ Choose brand that scores best on highest attribute
■ Tie? Check 2nd attribute
2
Ex; blockbuster went out of business cus people wanted to rent movies longer
3
Ex; PayPal was designed to facilitate payment on Ebay
4
Ex; Fitbit that tracks stats
4
, ○ Elimination-by-aspects heuristics
■ Rank attributes based on importance
■ Brands that score acceptable on most important attribute to 2nd
round and so on
● Compensatory model of choice
○ Pros and cons of every brand ⇒ choose brand best total option
○ Strong performance of important attributes can outweigh bad
performance on others
4. Purchase → first moment of truth Buying behavior
Impulse buying
● Pure: no intention
● Planned: want to buy certain tomato
● → influenceable
5. Post-purchase evaluation
● second moment of truth
● usage and consumption, post purchase engagement, and service requests
● Product as a touchpoint
● Post-purchase cognitive dissonance
○ Buyer’s remorse
○ Doubts or anxiety about the wisdom of the purchase
○ Most likely when purchase is important
● → reduce
○ Communication: reaffirm buyers, follow-up calls
○ Policy: return policy, money back
○ Sense of belonging: VIP, club membership
6. Divestment
Trends
● omni- channel management has become the new norm
● Firms less control over customer experience
● Very high amount of touchpoints
● Creating a strong customer experience now very important
Touch points = individual contacts between the firm and the customer at distinct points in the
experience
5
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