Variations in consumer decision making • Depends upon the type of product • Low priced /routine /habitual

– Reminder adv.– Periodic promotion– Prominent shelf position

• New products – High adv.– Free sampling – Special price offer – High value coupons

• Low knowledge about the productAds with detail information Sales personnel

Some people purchase a watch from a cognitive and rational viewpoint where as some may go for its styling or its association with a

certain life style or status level this is an experimental emotional approach

Response wheel• The response wheel

• Colored segment shows psychol-

ogical dimensions

• Dec.process Route Products

• Cognitive think/feel/do cars, new products

with high involvement

• Impulse do/feel/think snacks, beverages,

small house holds

• Experience feel/do/think restaurants, trade shows, new products

with sampling demonstration

• Repeat/habit do/think/feel Low priced

Consumer Learning Process

• Learning occurs intentionally (problem solving process) as well as un-intentionally.

• learning and memory theories are useful in understanding that how consumers wants and motives are acquired and how their tastes are developed, how frequently we are going to repeat our advertising , how visuals ,symbols ,sounds and other techniques can facilitates promotion.

Learning• Can be defined as relatively permanent

change on behavior occurring as a result of experience. (experience may be of purchase and consumption)

Types of learned behaviors

1. Physical behavior– We learn many physical behaviors to respond to a situation e.g. learn to

walk , talk , interact with others, and also the method of responding to various purchase situations.

– Consumers learn certain physical activity through the process of modeling, in which they mimic the behavior of other individual such as celebrities.

2. Symbolic Learning and problem Solving – Traffic signs , McDonald's Golden arches, slogans etc. and also the

cognitive process.– One can also engage in problem-solving process of thinking and insight

relations.– Thinking involves the mental manipulation of symbols representing the

real world to form meanings. This leads to insight that is relationships of products with problems .e.g u may be interested in buying an alarm for car due to certain symbols or ads but after some insight knowledge that ur car is always in secured parking lots u decide not ot waste money and spend it for some thing else.

Affective Learning

– People learn to value certain elements of their environment and dislike others. This means that consumers learn many of their wants ,needs, motives as well as what products satisfy these needs.

– Learning also influence the consumers in developing a favorable or unfavorable attitudes towards some product.

4 Elements of learning• Motives

– Motives arouse individuals and as a result they respond. This arousal function is essential because it activates the energy needed to engage in learning activity.

– By achieving the goal ,the arousal reduces, but have a greater tendency to occur again, that is why marketers put their product in a way that when relevant consumer motive arouse their products are their to satisfy the need.

– This result that consumer will learn a connection b/w the product and motive .

• Cues– Capable of providing direction i.e. it influences the

manner in which, to respond to motive.e.g. hungry man is guided by restaurant signs or aroma of food.

• Response– Mental or physical activity in reaction to a stimulus.

• Reinforcement– Anything that follows the response and increase the

tendency of response to reoccur in a similar situation.

ConditioningConditioning

Based on conditioning

through association or reinforcement

Based on conditioning

through association or reinforcement

ThinkingThinking

Intellectual evaluation comparing

attributes with values

Intellectual evaluation comparing

attributes with values

ConditioningConditioningThinkingThinking

How Consumers Learn

ModelingModeling

Based on emulation

(copying) of respected examples

Based on emulation

(copying) of respected examples

Consumer Learning Processes• Cognitive Learning (Thinking)

– Consumers learn through information processing and problem solving

• Behavioral Learning (Conditioning)– Learning via association (classical conditioning)– Learning via reinforcement (instrumental cond.)

• Modeling Processes (Modeling)– Based on observation of outcomes and consequences

experienced by others

Goalachievement

Goalachievement

InsightInsight

Purposivebehavior

Purposivebehavior

Cognitive Learning ProcessGoals leads to purposive behavior which leads to insight and to goal achievement.

GoalGoal

Behavioral learning theory.

–Based on the fact that learning occurs through the connection b/w an external stimuli and response (S-R).

Behavioral learning theory.• Two approaches of the theory

1. Classical conditioning

2. Operant conditioning

• Classical conditioning

• Says that learning is an associative process with an already existing relationship b/w a stimuli and response. e.g. of food and salivation that is not taught rather it already exists. or we can say food is unconditional stimuli and so as unconditional response salivation.

Classical Conditioning Process

ConditionedStimulus (bell,

Lipton Tea ,Brita waterfiltration pitcher)

ConditionedStimulus (bell,

Lipton Tea ,Brita waterfiltration pitcher)

Association develops throughcontiguity and repetition

Unconditionedstimulus

(Food, family events waterfall)

Unconditionedstimulus

(Food, family events waterfall)

Unconditionedresponse(salivation,

fun& enjoyment,purity ,freshness)

Unconditionedresponse(salivation,

fun& enjoyment,purity ,freshness)

Conditionedresponse(salivation,

fun& enjoyment,purity ,freshness)

Conditionedresponse(salivation,

fun& enjoyment,purity ,freshness)

• This Brita ad uses classical conditioning

Considerations while applying the theory

1. Contiguity : unconditional and conditional stimuli must be close enough in time and space

2. Repetition: the more often the unconditional and conditional stumble occur together the stronger the association

Operant conditioning• The individual must actively operate or act on

some aspect of environment for learning to ossur.Also called instrumental conditioning.

• Is that learner or consumer will discover the appropriate response that will be reinforced. i.e. instead of dog put a pigeon in the box .

• Button = conditional stimuli• Food = positive reinforcement

or unconditional stimuli

Increase or decrease inprobability of repeatbehavior (purchase)

Increase or decrease inprobability of repeatbehavior (purchase)

Instrumental Conditioning Process

Positive or negativeconsequences occur(reward or punishment)

Positive or negativeconsequences occur(reward or punishment)

Behavior(consumer uses

product or service)

Behavior(consumer uses

product or service)

Distinction b/w theories

1. Involve an already established response to another stimuli

2. The outcome is not dependant on consumers actions

3. Influences and change the opinions

1. No previous stimuli –response relation

2. The outcome is dependent on learner’s action

3. Influences changes in goal –oriented behavior.

External Influences on Consumers

Culture

Subculture

Social class

Referencegroups

Situations

Environmental influences on consumer behavior

• Culture – That includes knowledge , belief, art,morals,law,

customs, and any other capabilities and habits acquired by man as a member of society. every thing that is socially learned and shared by the members of society.

• Characteristics of culture

• Culture is learned– From one generation to an other

• Culture is socially shared– American culture in our society / TV programs etc.

• Culture are similar but diff.– e.g. calendar / education/ family/ music/ gestures/ housing

etc.

• Is persistent– Cultural elements are handed down from generation to

generations cant escape ur cultural heritage

• Is adaptive– But in spite of resistance culture is changing gradually rate of

change varies.

• Organized as well as integrated.– Tends to form a consistent and integrated as a whole.

• Subculture• Marketers can distinguish more homogeneous

groups subgroups within the heterogeneous national society. Sindhi / Punjabi/ pathan etc.– Race , nationality, religion

• Social class• Social class Vs Status

– Both can be of same social class but diff. in status

• Reference/ social groups• What role u are playing in the group

IMC Communications Task Grid

DecisionRole

CommunicationTask

TargetAudience

Where andWhen

IMC Options

Desired result oreffect fromcommunication

Primary group to reachat each stage

Best way toreach at eachstage

Best IMC toolto accomplishcommunicationtask

Role in DecisionMarkingProcess

Initiator

Influencer

Decider

Purchaser

User

And the Chapter is finished…!

THANK YOU!!