ELECTIVE 1 CONSUMER BEHAVIOR MIDTERMS REVIEWER:

MARKETING SALES
Definition Marketing is the systematic A sale a transaction between two parties
planning,implementation and where the buyer receives goods
control of business activities to bring (tangible or intangible), services
together buyers and sellers and/or assets in exchange for money.
Responsible for an agreement to a buyer on the
price of a security.
Approach Broader range of activities to sell Make customer
product/service, demand match the
client relationship etc.; determine products the
future needs and has a strategy in place company currently
to offers.
meet those needs for the long term
relationship.
Focus Overall picture to Fulfill sales volume
promote, distribute, objective
price
products/services;
fulfill customer's
wants and needs
through products or
services the
company can offer.
Process Analysis of market, Usually one to one
distribution
channels,
competitive products
and services; Pricing
strategies; Sales
tracking and market
share analysis;
Budget
Scope Market research; Once a product has
advertising; Sales; been created for a
Public relations; customer need,
Customer service persuade the
and satisfaction . customer to
purchase the product
to fulfill her needs
Horizon Long terms Short term
Strategy pull push
Priority Marketing shows how to reach to the Selling is the ultimate
Customers and build long lasting result of marketing.
relationship
Identity Marketing targets the Sales is the strategy of
construction of a brand meeting needs in an
identity so that it opportunistic, individual
becomes easily method, driven by
associated with need human interaction.
fulfillment. There's no premise of
brand identity, longevity
or continuity. It's simplythe ability to meet a
need at the right time.

Schedule: September 30, 2022 (Friday), 3:00pm- 5:00 pm

 ELECTIVE 1 CONSUMER BEHAVIOR MIDTERMS REVIEWER:

Module 1
 Consumer Behavior- Totality of consumers decision with respect to the acquisition, usage, and disposal of
a product by decision making units overtime.
 Consumer behavior reflects on the totality of decision about the consumption of an offering by decision
making units overtime.
 8 ways in acquiring an offering: Buying, trading, renting/leasing, bartering, finding, gifting, stealing,
stealing
 Using an offering- The core of consumer behavior, product may reflect on consumer personality. Word
of mouth is the strongest advertisement where positive or negative.
 Disposing an offering- Getting rid of an offering: Find new use for it, Get rid of it temporarily, get rid
permanently.
 Managing money and making financial decision- consumer differs attitude towards money . how
consumer make financial decision before, during, and after acquisition.
 Consumer behavior is a Dynamic process- millenials have more access to communication and
promotion giving them more choices of acquiring a product.
 Consumer behavior involves many people- Individuals involved in making decision, Their insights
are considered.
 What affects consumer behavior? 4 broad domains
1. The Psychological core- motivated, able and opportunity to perceive information.
2. The process of making decision- comprehend information they can retrieve during decision making
process.
3. The consumers culture- Consumers cultural environment can influence how they process information
and how they make decisions.
4. Consumer behavior outcomes and issues- Innovation: Adoption, resistance and diffusion.
 Who benefits in studying consumer behavior?
1. Marketing managers- Consumer behavior provides critical information for marketers to develop
marketing strategies and tactics.
2. Ethicists and advocacy group- Spread awareness of inappropriate practices.
3. Public policy makers and regulators- Legislators and government agencies develop policies and rules
from inappropriate marketing practices
4. Academics-disseminate knowledge about consumer behavior, Generate knowledge about consumer
behavior through research
5. Consumer and society- protect their children from inappropriate research practices.
 Consumer research methods- 2 types of data- Primary- data intended for specific research; Secondary, data
used in research are not intended for specific research
Tools for primary research investigating consumer behavior
1.
2. Survey- written instrument 10. Field experiments- real world to see
3. Focus groups- 8-12 people discussing actual reaction of consumer
product 11. Observation and ethnographic
4. Interview-1 on 1 discussion about research- Observing from home to gain
product insights
5. Diaries- written or online diaries about 12. Purchase panels- Tracking what
product purchasing consumers buy in different occasion
6. Story telling- telling stories about 13. Database marketing- Combining
acquisition, usage, and disposition consumer and purchase to identify
experience patterns
7. Photography and pictures- Showing 14. Netnography- Data gathered form
pictures to elicit comments online comments and activities
8. Conjoint analysis- important appeal of 15. Psychophysiological reaction and
the product neuroscience- physiological reactions
9. Experiments- application of marketing and applying neuroscience techniques
phenomena under laboratory conditions
 Types of consumer researchers (RDA, RDCP, RDGU)
1. In-house marketing research firms-conducted by company for company, less objective but protected
data
2. External marketing research firms- develop measurement instruments, analyze data and develop
reports to clients
3. Advertisement agencies and media plannings- research about what advertisement will appeal to
clients target market
4. Syndicated data services- collect and sell data to firms
5. Retailers- tracking sales of brands
6. Research foundation- non profit org. Sponsoring research relevant to foundation goals; Trade groups-
professional org. Of marketers in the same industry

Schedule: September 30, 2022 (Friday), 3:00pm- 5:00 pm

 ELECTIVE 1 CONSUMER BEHAVIOR MIDTERMS REVIEWER:

7. Government- business use gov’t data for marketing purposes; Consumer protection- Consumer safety
com’n
8. Consumer organizations- Research about a specific product for protecting/ informing consumers
9. Academics and Academic department- Enhance general understanding about consumer behavior.
 Ethical Issues of consumer research
 Positive aspect- Better consumer experience- marketers develops more satisfying acquisition and post
purchase experience; Potential customer relationship- Enhance relationship with customers by
understanding their need
 Negative aspect-1Studying consumer behavior in different countries; Potential higher marketing cost;
Invasion of consumers privacy; Deceptive research practices

Module 2: Psychological Core (Part 1)

Motivation: Provides energy needed to achieve a goal; movere “to move”, creating actions to achieve goals;
Consumer can be motivated to engage in behavior, make decision, process information and this motivation can be
seen in context of acquiring, using and disposing an offering.
 3 Consumer motivation and its effects
1. High effort behavior- one outcome of motivation is behavior that takes considerable effort.
a) Motivation creates willingness to expend time and energy on preparatory behaviors.
b) Consumers try to match anticipated and actual effort (simplifying the decision if the anticipated effort
will be too much trouble).
2. High effort information processing and decision making- motivation also affects how we process
information and make decisions.
a) When highly motivated to achieve a goal, consumers pay careful attention, think, attempt to understand
and comprehend the goal.
b) Relevant information, evaluate information critically, and try to remember for later use.
c) Motivated reasoning- processing information in a way that allows consumers to reach the conclusion
they want; create a reason to like a product.
3. Felt Involvement- consumers’ experience of being motivated with respect to a product; feeling of
involvement with a specific product.
 4 Types of involvement
1) Enduring- Long term interest in an offering; getting hook with the product of a brand; consumers
engage in activities that reveal their interest.
2) Situational (temporarily)- temporary interest in an offering often caused by situational circumstances;
product encountered merely engaging with a product in a specific period of time; no enduring
involvement after buying a product, interest about the product is over once product is bought.
3) Cognitive- interest in learning and thinking about information pertinent to an offering; get new/
additional information; more on thinking and learning.
4) Affective- interest about expanding emotional energy and evoking deep feelings about an offering; E.g
emotional feelings towards music; emotions are involved; offering exhibits a strong affective
involvement (intense emotions).
 Objects of involvement:
1. May include product or retail category- involved with a specific product or category
2. Involvement with a brand- involved with the brand itself
3. Involvement with ads
4. Involvement with a medium- specific medium used
*Response involvement- interest in certain decisions and behaviors.
 What determines motivation?
Motivation- Influenced by: (3 influences: Personal Relevance, Perceived risk, moderate inconsistency with
attitude)
1. Personal relevance (5)- something that has a direct bearing on the self and has potentially significant
consequences or implications for our lives; can cause consequences favored to you.
1) Self Concept- our mental view of who we are.

Schedule: September 30, 2022 (Friday), 3:00pm- 5:00 pm

 ELECTIVE 1 CONSUMER BEHAVIOR MIDTERMS REVIEWER:

2) Values- abstract. Enduring beliefs about what’s right/ wrong.

3) Needs- internal state of tension experienced when there is discrepancy between the current and ideal or
desired physical or psychological state; determined based on feeling or situation.
 Maslow’s hierarchy of needs. (5 needs)
5.Psychological needs- biological and basic needs mandatory for survival
4.Safety needs- includes security and protection from physical and emotional harm
3.Social needs- affection, sense of belonging, friendships to overcome loneliness/ alienation.
2.Self esteem (egoistic) needs- achievement, mastery, confidence derived from recognition,
respect, attention; feels confident and valuable.
1.Self- actualization- person reached peak of their potential.
 Types of needs (5)
1) Social Needs- externally directed or relate to other individual; relating to other people.
E.g. need for support drives us to have others relieve our burdens, motivated to buy hall mark
or use social media because they help us achieve need of affiliation.
2) Personal Needs- are those for which achievement is not based on other people; based
personally.
E.g. needs for sleep, novelty, control and understanding (purchasing brand repeatedly to
maintain consistency or buy something different to fulfill need for variety.
3) Functional Needs- need that motivates the search for offering that solve consumption related
problems; needs from a product/ buying a certain product for its function.
4) Symbolic Needs- need that relates to the meaning of our consumption behaviors to ourselves
and to others; how we perceive ourselves ourselves and by others; the need to avoid rejection,
need for achievement, status affiliation, and belonging to reflect our position or role.; How
products express identity
5) Hedonic needs- need that relate to sensory pleasure, needs for sensory stimulation, cognitive
stimulation, and novelty (nonsocial hedonic needs) and needs for reinforcement, sex, play
(social).
 Characteristics of needs (4)
1) Needs can be internally or externally activated- many needs are internally activated, some
needs can be externally cued
2) Need satisfaction is dynamic- satisfaction is only temporary; daily life is constant process of
need fulfillment
3) Needs exist in a hierarchy- many needs are activated simultaneously, some assume more
importance than others; importance and priority
4) Needs can conflict (3 ways)
a) Approach- avoidance conflict- consuming an offering that fulfills one need but fail with
the other.
b) Approach- Approach conflict- inner struggle in which offering to acquire when both
can satisfy important but different needs.
c) Avoidance- avoidance conflict- inner struggle in which offering to acquire when neither
can satisfy an important but different need.
4) Goals- important influence in personal relevance and motivation; particular end state nor outcome
would like to achieve; more specific and concrete than needs
 Goal setting and pursuit in consumer behavior-the process of setting and pursuing goals is circular:
how a person feels about achieving/ not a goal affects what new goals are being set and why. The
process affects the individuals motivation to initiate or continue behaviors relevant to the goal that
has been set, and so fort

 Types of goal (2)

1. Promotion-focused- consumers are motivated to act in ways to achieve positive outcomes ;
focus on hope, wants and accomplishments.
2. Prevention- focused- motivated in a way to avoid negative outcomes;focus on
responsibilities, safety, guarding against risk.
 Goals and emotions- successful or unsuccessful in attaining our goals determine how we feel
 Appraisal Theory- a theory of emotion that proposes that emotions are based on an
individuals assessment of a situation or an outcome of its relevance to his/her goals
 Appraisal theory- emotions are experience based on how consumer appraise a situation or
outcome in the light of their goals, needs and self concept.
5) Self control- consumers regulates their feelings, thoughts, decision and behavior in line with their long
term goals; conflicts how we face decisions about actions related to goals that are in conflict.
 Ego Depletion- outcome of decision making effort that results in mental resources being exhausted
 Embodiment- Connection between mind and body that influences and expresses consumer self
control and behavior.
2. Perceived risk- the extent to which consumer anticipates negative consequences of an action, buying, using,
disposing.
 Perceived risk can be associated with any product or service, but it tends to be higher when the offering:
1) is new- no reviews
2) has a high price- capability to buy specific product

Schedule: September 30, 2022 (Friday), 3:00pm- 5:00 pm

 ELECTIVE 1 CONSUMER BEHAVIOR MIDTERMS REVIEWER:

3) is technologically complex- can affect non- technology users

4) Differs fairly in quality and might cause the consumer to make an inferior choice- may cause
regret/ fear of regret
5) The consumer has a little confidence or experience in evaluating an offering- not confident
enough to acquire.
6) When the opinion of others are important and the consumers are likely to be judged on basis of
A.U.D.
7) Has a little information available- no information and little reviews to be processed cause hesitation
 Types of perceived risk- useful to distinguish six types of risk that consumers can perceive:
1) Performance risk- uncertainty whether the product will perform as expected
2) Financial risk- risk is higher when an offering is expensive
3) Physical or safety risk- potential harm a product might post to one’s safety
4) Social risk- potential harm to one’s social standing that may arise from A.U.D. of an offering
5) Psychological risk- consumers concern about the extent to which a product fits the way they
perceive themselves.
6) Time risk- reflect uncertainties about the length of time that must be invested in A.U.D. of the
product.
Ability- consumers have the required resources to make an outcome happen.
 Consumers ability: resources to act- motivation may not result into action unless a consumer has the ability
to process information, make decisions, or engage in behaviors.
 Resources that may affect consumers ability to process information about brands
1. Financial resources- consumer use money to to enhance their ability to make decisions and take
actions.
2. Cognitive resources- consumers vary in their knowledge about and experience of an offering
3. Emotional resources- consumers ability to experience empathy and sympathy can affect their
processing of information and their decisions about their brand choices, A, U, D, and so on.
4. Physical resources- physical capabilities “body power ” can affect when, where, how, and whether
the consumers make decisions and take actions.
5. Social and cultural resources- Social resources- social relationships that people have with others
and the extent to which they can leverage the resources contained in the relationship.; Cultural-
derive from the knowledge and access to the system of cultural institutions.
6. Education and age- related to the ability to make decisions and process information; education-
more cognitive resources to use when processing complex information and complex decision; Age-
ddifferences in physical resources and processing ability.
Opportunity
 Consumer opportunity- final factor affecting whether motivation result s in actions is customers
oppportunity to engage in behavior.
 Key Influences
1. Time- can affect opportunity to process information, make decisions, and perform certain
behaviors
 Consumers under time pressure to make a decision will:
1) Acquire less information 3) Place more emphasis on negative
2) Process the information less information
systematically
2. Distraction- refers to any aspect or situation that diverts consumers attention.
3. Complexity, amount, repetition, and control of information
 Complexity- complexity of information exposed can affect consumers opportunity to process it;
technical and qualitative data are difficult to hand than non-technical and qualitative data.
 Amount- messages containing pictures without words can be ambiguous and hard to comprehend.
Marketers use visualization tools to communicate complex information and facilitate processing.
 Repetition- if consumers repeatedly exposed to information, more opportunities to think asbout it
and remember information
 Control of information- consumer remembers more when they can control the information by
determining what information is presented, for how long, and in what order. Print and online ad,
consumers have more control over which messages they pay attention to, how long processing each
message, and the order in which they process the messages.
 Ways in enhancing opportunities by marketers
1. Repeating marketing communication- repetition increases opportunity to process information in
ads, but also can reduce consumers motivation to process information once the ad is worn out.
2. Reducing time pressure- lessen distractions; store may extend their hours/ offer online stores so
consumers can shop less distracted and least time pressured.
3. Reducing the time needed to buy, use, and learn about a product or service- allows more
opportunities to process information and act on their decisions. Clear signs or directoried helps
consumer locate good can increase assurance of purchase.
4. Offering information when and where consumers choose to access it- will open more
opportunities for processing and acting on information; mobile marketing; product information,
receive and place orders from anywhere, anytime.

Schedule: September 30, 2022 (Friday), 3:00pm- 5:00 pm

 ELECTIVE 1 CONSUMER BEHAVIOR MIDTERMS REVIEWER:

Module 3: Psychological Core: Exposure to Comprehension Part 2

 Exposure and consumer behavior
 Exposure- consumer comes in physical contact with a stimulus; contact with marketing stimulus.
 Marketing Stimuli- information about commercial communicated by marketers(ads) or non marketing
sources (word of mouth)
 Factors Influencing Exposure
1. Position of an ad within a medium-placement of ad to retain attention of consumers
(commercials),how many will see it.
2. Product placement- like in celebrities, sponsor-ships, brands sponsors on tv shows
3. Product distribution and shelf placement- where products are available (eye level shelf); the more
stores carry a product, higher likelihood consumers will encounter it.
 Selective exposure- consumer seek out certain stimuli and avoid/ resist others; controlling
exposure to stimuli
 Reasons consumers avoids ads:
1. Exposed to many could lead to not processing it all
2. Avoid ads of products they do not use
3. Avoids ads they have seen because they already know the content.
 Zipping, Zapping, Cord Cutting
1. Zipping- forwarding through commercials recorded earlier
2. Zapping- use of remote controls to switch channels during commercial break
3. Cordcutting- consumer taking charge when, where, how long are exposed to stimuli; in
favour of “netflix”
 Attention and consumer behavior- while exposure reflects whether consumers encounter a stimulus
 Attention- amount of mental activity consumers devote to a stimulus; enables consumers to learn from
exposure to marketing stimuli and make more informed decision
 3 Characteristics of attention
1. Attention is limited- need to focus in a specific ad to fully focus on the info
2. Attention is selective- consumers choose marketing stimuli they will focus
3. Attention can be divided- allocating attention to one task to another; rapidly switching
 Focal and Non- Focal Attention
1. Focal Attention- focus on a stimulus
2. Nonfocal attention- simultaneously being exposed to another stimuli
3. Preattentive processing- non-conscious processing of a stimuli, such as peripheral vision
 Marketers often make steps to attract consumes attention by making the stimulus:
1. Make stimuli personally relevant- appealing to our needs, values, goals, and emotions.
2. Make stimuli pleasant- people approach things that are inherently pleasant; using attractive
models, music, humor
3. Make stimuli surprising- likely to process stimulus when surprising; using novelty,
unexpectedness, puzzle.
4. Make stimuli easy to process- enhance attention by boosting consumers ability to process stimuli;
prominent, concrete, limited number of competing stimuli, and contract competing stimuli.
1) Prominence- intensity of stimuli making it stand out
2) Concrete- stimulus capable of being imagined
3) Habituation- stimulus loses attention-getting ability because of familiarity; alter stimulus
periodically
 Perception and consumer behavior
 Perception- process of determining the properties of stimuli using vision, hearing, taste, smell and touch
(use of 5 sense)
 Perceiving through:
1. Vision- size and shape, lettering/ font, logo, image location on package, colour, appearance;
totality of appearance

Schedule: September 30, 2022 (Friday), 3:00pm- 5:00 pm

 ELECTIVE 1 CONSUMER BEHAVIOR MIDTERMS REVIEWER:

2. Hearing- identify specific sound that is iconic to a specific brand(sonic identity); auditory stimuli;
sound symbolism- consumers form evaluations and product attributes from information heard from
brand sound, syllables, sound.
3. Taste- tasting/ food sampling (in- store marketing tactic)
4. Smell- smell on mood (elevates pleasure), smell on liking (personal), smell on buying (perfume
samples)
5. Touch- like products because of their feel, texture of the product
 Sensory Marketing, Absolute Threshold, Differential Threshold, Weber’s law
1. Sensory marketing- systematically managing consumers perception and experience of marketing
stimuli
2. Absolute threshold- minimal level of stimulus intensity needed to detect a stimulus.
3. Differential threshold/ just noticeable difference- intensity difference needed between 2 stimuli
before perceive diff.
4. Webers’ law- first stimulus retain attention and couldn’t perceive different stimulus; strong initial
stimulus, greater the additional intensity needed for the second stimulus to be perceived different.
 How do customers perceive a stimulus? 5
1. Perceptual organization- one direction of communication/ commercial’ commercial connected-
ness
2. Figure and ground- stand out and visible; people interpret stimuli in the context of the
background
3. Closure-need to organize perceptions to create al whole.( tv ad. to radio ad); specific concept used
in diff. mediums.
4. Grouping- group a stimuli to form a unified picture or impression; grouping a stimuli to form a
visual
5. Preference for the whole- customers that buys a bundle;
 Comprehension and consumer behavior
 Comprehension- extracting higher order meaning than what is perceived in the context of what we know
 Source identification- process of determining what the perceived stimulus actually is, what category it
belongs to.
 Message comprehension- marketers are concerned with:
1. Objective and subjective comprehension of message- Objective: consumers accurately understand
the message a sender intends to communicate; Subjective: what the consumers understand from the
message whether its accurate.
2. Possibility of miscomprehension- innacurate information being delivered to consumers
3. Effect of motivation, ability, and opportunity in comprehension- may not comprehend marketing
message when have limited MAO
4. Effect of culture- culture appropriate products; language diff affect miscomprehension.
 Consumer inferences-Inferences- conclusions consumer interpreted that they form base on the message
such inferences may lead to conclusion such as: Congruent- if brand a contains attributes 1 then it will also
contain attribute 2; Incongruent- if brand a contains attribute 1 it will not contain attribute 2.
 Effects of: Brand names and symbols, product features and packaging, price, message wording, retail
atmospherics, displays and distribution
1. Brand names and symbols- can create subjective comprehension and inferences
2. product features and packaging- taste inference based on info. In the package
3. Price- quality based on price
4. Message wording-way marketers use words
5. Retail atmospherics, displays and distribution- totality.

Schedule: September 30, 2022 (Friday), 3:00pm- 5:00 pm

 ELECTIVE 1 CONSUMER BEHAVIOR MIDTERMS REVIEWER:

Module 3: Memory and Knowledge

 Consumer Memory- persistence of learning overtime via storage and retrieval of information ,
consciously/not.
 Retrieval- process of remembering or accessing info previously stored in memory
 Aspects
1. Things- product 3. Evaluation- satisfaction, satisfied or not
2. Experience- felt during acquisition, how,
where, when, why it was bought
 4 Types of memory
1. Sensory memory- ability to temporarily store input from five senses
1) Echoic Memory- we hear 3) Olfactory- we smell
2) Iconic- we see
2. Working-incoming info encoded/interpreted incontext of existing knowledge, kept av’ble for
processing
 Imagery processing key implications for marketers:
1) Imagery can improve amount of info that can be processed
2) Imagery can stimulate future choice (expectation vs. reality)
3. Long- term mem- information permanently stored for later use
 Two types of long term memory
1)Episodic (autobiographical)- knowledge about self, past experience (emotion, sensation tied
to past)
2)Semantic- general knowledge about an entity, detached from specific episodes; concept,
concrete
 Various techniques leverage power of episodic memory for marketing
1) Promote empathy and 2) Cue and preserve episodic
identification memories
3) Reinterpret past consumption experiences
4. Explicit VS Implicit
1)Implicit memory- consciously aware of remembering something
2)Explicit- unconsciously aware o remember something, easier to process info encountered,
familiarity
 How memory is enhanced
1. Recognition- identifying whether stimulus was previously encountered when re-exposed to
stimulus
2. Recall- retrieve info about stimulus from memory without being re-exposed
3. Elaboration- transferring info into long term memory by processing in deeper levels
 Marketers can apply to help consumers remember brands, communication, offering:
1. Chunking- group of items processed as a unit
2. Rehearsal- actively & consciously interact w/ what is trying to remember, silently repeat/active
thinking
3. Recirculation- important principle of mktg explaining why repetition affects memory to
remember info.
4. Elaboration- transferring info into long term memory by processing at deeper level.
 Knowledge, content, structure, and flexibility
1. Knowledge content-reflects the info we have already learned and stored about brands, companies,
how to use a brand
2. Knowledge structure- how we organize both episodic and semantic in memory.; “know” what we
have encountered (knowledge content) the way that knowledge is organized in the memory
(knowledge structure). both are flexible
 Knowledge contents: schemas and scripts
1. Schema- set of associations linked to a concept in memory
2. Spreading activation- retrieving a concept or association spreads to retrieval of a related
concept; linking product with specific thinking or interpretation
3. Priming- increased sensitivity to concepts and association due to prior experience based on
implicit memory

Schedule: September 30, 2022 (Friday), 3:00pm- 5:00 pm

 ELECTIVE 1 CONSUMER BEHAVIOR MIDTERMS REVIEWER:

 Association in schemas described along several dimensions:

1. Attributes 3. Values 5. Consumption locations
2. Benefits 4. Consumption occasions 6. Brands
 Association in schemas vary in 3 dimension crucial to building/ maintaining brands:
1. Favorability- favorable with consumers evaluation
2. Uniqueness- uniqueness among other competitors
3. Salience- how easy to retain/ recognize, process a stimulus
 Specific Schemas: Brand image, personality and anthropomorphization
1. Brand Image- captures what a brand stands for and how favorably it is viewed
2. Brand personality- set of associations included in a schema that reflect brand’s
personification
3. Script- represents knowledge of the sequence of actions involved in performing an
activity; consumers remember the way to perform an activity (how to order, queuing)

Schedule: September 30, 2022 (Friday), 3:00pm- 5:00 pm

 ELECTIVE 1 CONSUMER BEHAVIOR MIDTERMS REVIEWER:

Module 5: Judgement and Decision-Making based on High and Low Effort (Part 1)
 High Effort Judgement
 Judgement- evaluation/ estimate regarding likelihood product will contain certain feature/ perform in
certain manner
 Decision making- making selection among options/ activities
 4 Kinds of Judgement
1. Elimination of likelihood-determining the probability that something will occur.
2. Judgements of good/badness-reflect evaluation of desirability of offering features.JGB based on affective
responses
3. Mental accounting-ctegorize spending & saving decision to account mentally designate for specific
consumption transaction
4. Emotional accounting-intensity of +/-feeling associated with each account influence buying beh.
Utilitarian/hedonic purchase
 7 Biases in Judgment Processes- judgment is not objective. Biases compromise quality of decision and
affect judgment
1. Confirmation bias- Sets up consumer for less optimal choices
a) focus more on judgement that confirms their beliefs and hold with confidence
b) Ignore the information that runs counter their judgment
c) Over/underweighing in forming judgement can reduce tendencies to search info.
2. Self positivity bias
a) Make judgments to extent that they or others are vulnerable to bad having bad things happen
b) Tend to think that bad things more likely to happen to other than them
c) Sot process messages suggesting they are also vulnerable to some risk(bad news for marketers
informing possibility)
3. Negativity bias- puts more weight on negative info than positive when forming judgement. Forming opinion
about something important to them, as good as a judgement as possible. Committed to a brand don’t engage in
negativity bias (unlikely)
4. Mood and bias- mood can bias judgement. Mood as initial anchor to judgement (good mood- +response);
ignore - info to preserve good mood; overconfident about the judgement they are reaching
5. Prior brand evaluation- past exposure, fail to learn info about the attributes affecting brands actual quality;
Fav brand block learning about quality-revealing product attributes that should affect the consumers judgments
6. Prior experience- learn from past, can be helpful/ bias judgement for future decisions. Customizing product to
own specifications lased on experience with decisions made early in the process, decisions are easier/difficult.
7. Difficulty in mental calculations- comparing price/discounts. Difficulty in calculating diff with 2 prices can
lead to think that the numerical difference are larger than reality which will bias their judgements.
 High Effort decisions and Decision making Process
 5 Types of decisions consumer face in high effort situations
1. What offering to consider 4. Whether to make decision now or delay a decision
2. What factors are important to the choice 5. How to make choices when alternatives cannot be
3. What choices to actually make compared
 Deciding on which brand to consider
1. Inept set- those that are 3. Consideration Set- those they want
unacceptable to choose among
2. Inert Set- those they treat with
indifference
 Deciding which criteria are important to the choice
1. Goals- affects criteria that will drive a consumers choice
2. Time- timing of the decision affects which criteria drives choices (urgency)
3. Framing- way how each criteria are defined.
 Decision framing -affects important of each criteria to choice; serves as an initial anchor to
decision process

Schedule: September 30, 2022 (Friday), 3:00pm- 5:00 pm

 ELECTIVE 1 CONSUMER BEHAVIOR MIDTERMS REVIEWER:

 Deciding which brand to consider: thought based decisions

1. Cognitive decision making model- systematically use information about attributes to reach decision
Cognitive model- describe the processes of the consumers combining info about attribute to reach a
decision rational/systematic manner
a) Compensatory Model-Forms JGB. Evaluate how good each attributes of brands in consideration
set. Weigh in term of how important each attributes to the decision. Brand with best overall score is
chosen
b) Noncompensatory model- use negative info to evaluate brand and eliminate from consideration
set the brands that are inadequate on any one or more important attributes
2. Affective decision making model- decision on the basis of feelings or emotions
 Decisions based on brands
 Brand processing- evaluating one brand at a time
1. Conjunctive model- sets up minimum cutoff for each attribute that represent absolute lower value they are
willing to accept. Sticking to a specific limit
2. Disconjunctive model- sets up acceptable levels of the cutoff levels that are more desirable; bases on
evaluations on several of the most important attributes rather than all of it. Putting weight on positive information
 Decision based on product attribute
 Attribute processing- compare across brands one attribute at a time
1. Additive difference model- compare each attributes 2 brands at a time. Evaluate the differences % combine to
make an overall preference
2. Lexicographic model- order attributes in terms of importance and compare options one attribute at a time,
starting from most important. One option dominates is selected.
3. Elimination by aspects model- incorporates notion of acceptable cutoffs; more attributes are likely to be
considered. First order attributes by importance and compare options on most important attribute. Options below
cutoff are eliminated and continue until one option remains
 What affects High Effort Decisions(3)
1. Consumer Characteristics- characteristics associated with consumers can affect decisions they make
1. Expertise-
a) understand preferences & decisions when have detailed consumption vocabularies(can articulate why
they like/dislike brands);
b) more branded based prior experience;
c) know how to identify relevant info and irrelevant attributes in decision making;focusing more on brand
effects and less attributes.
2. Mood-
a) good mood= willing to process info and take more time in making decision;
b) pay closer attention to set of brands being considered& think about higher number of attributes of each
brand, resulting in extreme+/- evaluations.
3. Time pressure- process info relevant to choices faster; major reasons consumers fall to make intended
purchase, can reduce shopping time and number of impulsive purchases; affects consumer to delay their
choice
a) Present oriented consumers- improve current well being and prefer products to help them do so
b) Future oriented consumers- develop themselves and select life enriching vacations and books.
4. Extremeness aversion- options of the attributes that are perceived extreme seems less atrractive than
those that are perceived intermediate; compromise effect- brand gains more share when perceived moderate
rather than extreme; attribute balancing
5. Metacognitive experiences- factors based on the decision making processing experience such as how
easy to recall info, form thoughts and how easy to process information.
2. Characteristics of the decision
1. Information availability- amount, quality, format or info affects decision making processing strategy
consumers use. More complex, more information, more likely to use more detailed decision making strategy
(multiattribute choice strategy); better choices but information overload

Schedule: September 30, 2022 (Friday), 3:00pm- 5:00 pm

 ELECTIVE 1 CONSUMER BEHAVIOR MIDTERMS REVIEWER:

2. Information format- how info organized in external environment influence decision making strategy
consumer use. Organized by brand= brand based decision making strategy; organized by attributes= attribute
processing strategy
3. Trivial attributes- consumers use to finalize decisions by looking at trivial attributes/ exception that one
brand contains.
3.Group context- decisions can be affected by the presence of other people
3 types of individual group goals:
1. Self presentation- seek to convey certain image through decisions they make in group context; use unique
choices as positive self representation/ expressing individuality; sometime consumer makes similar decisions to
blend in
2. Minimizing regret- minimizing regret by creating choice s that are similar to those the group made. Avoid
dissappointment they might feel when someone elses choice is better than their own
3. Information gathering- consumer learn ore about the different choices each has made through interaction
(share choices or simple share reactions)

Schedule: September 30, 2022 (Friday), 3:00pm- 5:00 pm

 ELECTIVE 1 CONSUMER BEHAVIOR MIDTERMS REVIEWER:

Module 6: Judgement and Decision making based on high and low effort part 2
 Low effort judgement- simplify cognitive process by using heuristics/ rule of thumb
1. Representativeness heuristics- one way that consumer can make simple estimations/ judgement is to
make comparison with the category prototype/ exemplar
2. Availability heuristics- judgement can also be influence by the case with which instances of an event
can be brought to minf, a short cut.
 Unconscious low effort decision making- consumers may make a decision without being consciously
aware of how or why they are doing so
 Learning choices tactics
1. Operant conditioning- views behavior as a function of previous actions of the reinforments/
punishments obtained from these actions.
2. Reinforcement- usually comes from a feeling of satisfaction that occurs when we as consumers
perceive that our needs have been adequately met. Increases probability to purchase same brand again
3. Punishment- consumers can have a bad experience with a product or service, form a negative
evaluation of it and never purchase again; brand does not meet our needs and dissatisfied, learn not to
buy it again.
4. Repeat purchase-learn same act is repeatedly reinforced or punished overtime. Occurs when buying a
common repeat purchase product. Reinforcement- satisfactory repeat, punished- trying to give a product
the chance for satisfaction
5. Choice tactics we use often depend on the product- category we are considering. Preferred brand/
brand loyalty even with high price. Other products that isnt committed to as viewed as not as important
(without preferred brand)
 Low effort thought bases decision making
1. Performance related tactics- tactics based on benefits, features/ evaluation of the brand; represents
overall evaluation(works the best)/ focus on a specific attribute/ benefits.
2. Habit- regular performance of the same act repeatedly overtime.often unconsciously made are difficult
to discontinue.; one of the simple most effortless types of decision making 1) little or no info seeking/ 2)
little or no evaluation of alternatives
3. Brand loyalty- buying repeatedly because of strong reference for it; occurs when consumer makes
conscious evaluation that a brand satisfies their needs to a greater extent; positive reinforcement
4. Price related tactics- simplifying decision heuristics that are based on price; buying cheapest
bran/sale/coupon
5. Normative choice tactics- low elaboration decision making based on others’ opinions; common w/
inexperienced consumer
Use of this tactic can result:
1. Direct influence- others try to manipulate us
2. Various observation- we observe others to guide our behaviors
3. Indirect influence- concerned about the opinions of others.
 Low effort feeling based decision making
1. Affect related tactics- tactics based on feelings
Affect referral- simple type of affective tactic, simply remember feelings for product/ service
2. Brand familiarity- easy recognition of a well known brand
Co- branding- arrangement by which 2 brand form a partnership to benefits from the power of both
3. Variety seeing- trying something different; having the urge to try another brands then return to regular
brand; boredom
4. Impulse purchase- unexpected purchase based on a strong feeling
Characterized into
1. Intense/ overwhelming feeling of having to buy the product immediately
2. Disregard potentially negative purchase consequences
3. Feelings of euphoria and excitement
4. Conflict between control and indulgence.

Schedule: September 30, 2022 (Friday), 3:00pm- 5:00 pm

ELECTIVE 1 CONSUMER BEHAVIOR MIDTERMS REVIEWER:

Schedule: September 30, 2022 (Friday), 3:00pm- 5:00 pm