Weekly Blog Post #2
HappyRainFrog1
Week2RX6-BuyerProcessFall20251111.pptxMAR6506: Buyer Psychology and Behavior
Week 2: Buyer Decision Process, Information Processing, Learning & Memory
Learning Objectives
The Buyer Decision Process steps and what are implications for marketers
What needs to happen in order of learning to occur and how to retain information in memory for later recall of products.
Learning Difference between Behavioral Learning Theories and Cognitive Learning Theories and how marketers to understand how individuals learn about their products.
How does Information Processing work and how marketers use it to understand how consumers retain information of their products - necessary for long-term relationships
Buying Decision Process
The consumer realizes a need (e.g., hunger, status, broken product)
Consumers seek internal info (memory, experience) and external info (friends, reviews, online)
Consumers compare brands and products.
Decision point influenced by preferences, promotions, convenience, availability.
Consumer evaluates satisfaction (cognitive dissonance possible)
Food for Thought:
Think of the last time you bought something significant (a phone, sneakers, a trip). What steps did you go through before making the purchase?”
How do marketers influence decisions at each stage?
Need/Problem Recognition
Buyer Recognizes need/problem through internal or external stimuli
Gap between ideal state and actual state
Ideal state: How individuals would like their situations to be
Actual state: What their situation really is
Expectancy Theory: Motivation arises when buyers believe that completing the purchase will close the gap
People act in ways that maximize pleasure and minimize pain, based on expected outcomes
Implications for marketers:
Create perception of ideal state through problem recognition.
Create perception of dissatisfaction of actual state
Provide products that appear to be solution to current non-ideal state
This Photo by Unknown Author is licensed under CC BY-SA-NC
Expectancy: Consumers must believe that purchase of the product can close the gap- explains why consumers are motivated to act beyond just recognizing a need- they calculate effort, outcomes and values
MAN7916 Doctoral Research in Business
Saturday, August 23, 2025
5
Ideal State vs. Actual State
Peloton
MAN7916 Doctoral Research in Business
Saturday, August 23, 2025
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Peloton -Actual State vs Ideal State
How does Peloton communicate the gap between actual state and Ideal State?
What is the actual state of the target?
What is the ideal state of the target?
How does it bridge the gap?
Does Peloton sell fitness or lifestyle?
What are some risks to this strategy?
Why might someone be motivated to chose Peloton over a cheaper stationary bike?
Marketers: make actual state seem inadequate, ideal state as achievable through their product.
MAN7916 Doctoral Research in Business
Saturday, August 23, 2025
7
Information Search
Search or alternatives: search for product information, ask for recommendations from friends and family, memory
Memory: look for familiarity, brands that produce positive feelings, and experiences
Only limited information can be stored
Implication for marketers:
Individuals only retrieve relevant information usually based on feelings and past experiences
Important to know the impact of recollection of memories, marketers must look to create positive attitudes
Having visibility is not enough- there has to be credibility
Be adaptive: shift strategies as buyer behavior changes with changes in the environment
This Photo by Unknown Author is licensed under CC BY-NC-ND
Evaluation
Costumer evaluates whether product would satisfy need
Includes looking a benefits
Will product provide a solution to the need?
Components:
Evaluation criteria: different attributes used to evaluate alternatives
Evaluation of choice alternatives: Consideration set that contains subset of alternatives
Accessing alternatives: Evaluation of performance of alternatives. Cutoffs are usually evaluated
This Photo by Unknown Author is licensed under CC BY
Evaluation
Decision Rules: common strategies used by customers to select alternatives
Non-compensatory decision rules: weakness does not compensate performance- if brand doesn’t meet cutoffs, it’s eliminated
Lexicographic: Products chosen based on most important attribute
Attributes are ranked-highest attribute drives the decision
Conjunctive: Products compared against accepted cutoff and chosen if meets cutoffs
Must meet minimum cutoff across all attributes- one strong attribute doesn’t compensate for a weak one
Elimination by aspects: Products evaluated based on most important attribute –all options not meeting the most important attribute are eliminated
Compensatory decision rule: weakness of an attribute is compensated by the strongest attribute
This Photo by Unknown Author is licensed under CC BY-SA-NC
Non-Compensatory
Non-Compensatory: The weakness of one attribute does not compensate for all positive attributes
Example:
You have a trip to NYC, you look at alternatives
Determining factors for decision making by level of importance:
Specific (non-flexible) schedule
Price
No layovers
Customer service
An airlines that provides a flight with no layovers and with great customer service doesn’t compensate for the fact that there are no flights with specific (non-flexible) schedule you are looking for
Lexicographic: Will rank all attributes and compare alternative starting with most important.
If several airlines have offer flights to NYC around the same schedule, then the next important attribute ”price” is considered
Conjunctive: Sets bare minimum cutoff and selection based on minimum accepted cutoff (e.g. schedule, price, destination)
Elimination by Process: Alternatives are eliminated when they don’t meet cutoff requirements:
Airlines that don’t offer flight to NYC are first eliminated, Price is the next determinant- airlines that fly to NYC but price is out of range are eliminated and so on until one option is left.
Unlike Lexicographic, cutoffs are considered
Compensatory
The weakness/shortfall of one attribute is compensated by advantages found in the other attributes
Example:
The airline/flight to NYC , attributes to look for:
Schedule (non-flexible)
Price
No-Layovers
Customer Service
You found an airline/flight that fits the schedule you look for, the price is within cutoff limits, and the airline is known for its great customer service, however it has one hour layover in Charlotte
This airline/flight is chosen despite one weak attribute (layover in Charlotte) because it is perceived to be the best choice given all other attributes are present
Evaluation
Implications for marketers: understanding decision rules have impact of purchase decision:
Identify which attributes matter most (positioning) and emphasize
Highlight strengths to compensate weaknesses
Use framing techniques (how is the information presented)
The way the message is presented changes perceptions
Reduce perceived risks
Recommendations, ratings, credible opinion- leverage on social proof
Framing technques such as reference points: anchor bias that shapes perceptions, win over loss
MAN7916 Doctoral Research in Business
Saturday, August 23, 2025
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Purchase
Decision to make purchase once options have been evaluated
Purchase often based on perceived risks such as situational factors
Factors that could influence process of purchase:
To buy or not to buy?
When to buy
What to buy
Where to buy
Mode of payment
Purchase: Function of intentions and environmental factors
This Photo by Unknown Author is licensed under CC BY-SA
purchase decision is not guaranteed once consumers form intentions. Marketers must remove friction, reduce risk, and provide convenience to ensure intention becomes action.
MAN7916 Doctoral Research in Business
Saturday, August 23, 2025
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Post-Purchase Evaluation
How is a product disposed? Is there future usage for it?
Product disposal is more than just throwing product away
Options of disposing products:
Giving it away
Trading it
Recycle or convert to something else
Sell it
Use it up
Destroy it
Abandon it
Implications for marketers:
How product is disposed often influence the purchase of another
If disposal is easy (e.g., Apple’s trade-in program), consumers are more likely to upgrade sooner.
Excessive waste can discourage repeat purchases; recyclable packaging encourages loyalty.
MAN7916 Doctoral Research in Business
Saturday, August 23, 2025
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Garbology
This Photo by Unknown Author is licensed under CC BY-SA-NC
By studying discarded items, marketers can evaluate brand loyalty, usage frequency, packaging impact, and wasteful habits, which informs product design and campaigns.
MAN7916 Doctoral Research in Business
Saturday, August 23, 2025
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Learning and Memory
Learning is a continuous process caused by experience
Involves the range of learning from simple responses to learning of complex problem solving
For learning to occur, basic elements have to be present:
Motivation
Cues
Responses
Reinforcement
Memory refers to the storage of learned information
Encoding determines how information will be stored in the memory
Retrieval: process of remembering the stored memory
Two school of thought that concern the learning process:
Behavioral Theories and Cognitive Theories
John Deere Monster Treads Ad
Nike-Dream Crazier
Baskin Robbins- Variety Pack
MAN7916 Doctoral Research in Business
Saturday, August 23, 2025
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Learning and Memory
Which brands do you remember?
What is the key message or image that stuck with you?
Which factor—emotion, visual, music—do you think helped you recall it?
How do sensory elements, emotion, and storytelling contribute differently to memory encoding and retrieval?
Which ad was easiest to recall and why?
Behavioral Learning Theory
Learning occurs as response to external events
Learning takes place when an individual responds in a predictable way to known stimulus
Behavioral scientist are mostly concerned with response to environmental stimuli and observable behavior
Individuals respond to jingles, scents, brand names
Two main Behavioral Learning Theories:
Classical conditioning and Instrumental conditioning
This Photo by Unknown Author is licensed under CC BY-ND
This Photo by Unknown Author is licensed under CC BY
Behavioral Learning Theories- Classical Conditioning
First introduced by Ivan Pavlov through experiments with dogs
Pavlov demonstrated that after repeating the action of ringing the bell, dogs automatically began salivating.
The bell was the indicator of food.
The dogs associated the conditioned stimulus (the bells) with an unconditioned stimulus (food)
Learning happened after a repetition of the bell sound followed by the food.
This Photo by Unknown Author is licensed under CC BY
Behavioral Learning Theories- Classical Conditioning
Behavior learned through associations
Occurs when a stimulus that naturally produces a response (unconditioned stimulus) is paired with another stimulus that doesn’t create the natural response (Neutral stimulus)
Over time, the stimulus (neutral) is conditioned or learned to react in a way that the unconditional stimulus does
Learning happens through repetition- without repetition there can’t be conditioning
Behavioral Learning Theories- Instrumental Conditioning
Happens through rewards and reinforcement- habit forming
Over time, expectation of reward becomes automatic
Learning happens through trial and error
Repeated behavior through positive reinforcement:
Customer satisfaction
Service provided
Buying experience
Reinforcement increases the likelihood that specific responses will happen again in the future
Positive reinforcement comes in forms of rewards programs, coupons, freebies
Example: Having clear skin after using this product can result in purchasing again.
Positive reinforcement will be in the form of a satisfied customer, allowing learning to occur
Starbucks example ( The Habit Loop)
Cue: Trigger (morning commute
Routine: Action
Reward
Every purchase earns points which reinforces repeated buying
Coffee desire
Stop at Starbucks
Coffee and star rewards
Involvement Theory
Involvement Theory- People engage in limited information processing in low importance situations
Concerned with customer’s involvement with products and purchases
High – involvement purchases: of great importance to buyer (perceived risks)
Low- involvement purchases: not very important to the customer
This Photo by Unknown Author is licensed under CC BY
Cognitive Learning Theory
Based on consumer thinking and problem-solving
Learning takes place due to mental activity (internal events)
Concerned with how information is stored, retained, and retrieved
Psychological process such as perception, motivation, and mental processes produce desired response
Evaluates information that is already known in order to make decision on unfamiliar events/purchases
Brain stores information and retrieves/recovers at moment purchase moment
Assumptions of Information Processing Model:
Information is processed in steps
Brain works similar to computers
Obtain external information-process-input
This Photo by Unknown Author is licensed under CC BY-SA-NC
Information Processing
Selective Attention
Information Processing
Similar to computer processing, the mind processes information received
Refers to the process by which stimulus is received, interpreted, stored, and retrieved
The number of alternatives can influence the degree of information processing
Information processing has five stages:
Exposure: Contact with the stimulus
Attention: Allocation of processing capacity to the input (stimulus)
Attention is selective ( people notice what is relevant to them)
Comprehension: Interpretation of the input (stimulus)
Often based on prior knowledge, beliefs, and context
Acceptance: Persuasive impact of the input (stimulus) – is information accepted or rejected?
Retention: Transfer of input (stimulus) interpretation into long-term memory
Information Processing Framework
Attention
Sensory Input
Encoding
Retrieval
Rehearsal
Sensory store
Short – term store (working memory)
Long-term store
Information Processing Framework: Sensory Store
First interaction with information (Temporary store of information)
Two senses used to reach sensory store:
Iconic ( visual lasts- less than 1 second)
Echoic (hearing - lasts 3-4 seconds)
Data comes in fragmented pieces e.g. color, shapes and not as a whole image
Imagery allows for formation of mental pictures and perception
Image lasts for short period (2-3 secs)-if info is not processed its lost forever
Challenge for marketers is create lasting impression
Attention allows to the retention of information- something that generates interest or value
Information Processing Perspective
Attention
Sensory Input
Encoding
Retrieval
Rehearsal
Sensory store
Short – term store (working memory)
Long-term store
Information Processing Framework: Short-Term/Working Memory
Information is held briefly and has small capacity (e.g. phone numbers)
Process of rehearsal/repetition allows for transferring to long-term store
Information can be lost if not rehearsed or transferred
Rehearsal is done purposely for encoding to occur
Encoding uses words or visuals to represent a perceived product
“Learning” through a visual image is easier than through verbal information
Use of Imagery to identify brand
Why are some more memorable than others?
MAN7916 Doctoral Research in Business
Saturday, August 23, 2025
37
Information Processing Perspective
Attention
Sensory Input
Encoding
Retrieval
Rehearsal
Sensory store
Short – term store (working memory)
Long-term store
Information Processing Perspective: Long-Term Memory
Learning occurs once information reaches long-term memory
Retains information for long-periods of time (storage of data)
Activation – Relate new information with old one
Pulling information from long-term memory into conscious thought (association)
Chunking- Information stored in chunks and constantly organized and re-organized
Marketers use slogans as chunks to help encoding
Information stored in two-ways:
Episodic: Recollection of experiences- event related in space and time
e.g.: Recalling what you did for your birthday last year
Semantically: General knowledge
e.g : Capitals of countries
Procedural: How to skills and habits- done automatically
e.g. : Knowing how to use the Uber app
Retrieval: recovers information from long-term back to short term memory to be used at purchase moment
Long-term memory is where marketers want their messages to live
Hyundai Genesis “ Kevin Hart” Commercial
Pampers Commercial “#1 Pediatrician Brand”
SONY BRAVIA “Balls” Commercial
Key Takeaways
Buyer Decision Process consists of 5 steps starting from recognition of need to post-purchase evaluation
Marketers must understand behaviors at each stage which includes experiences, learning, using, and disposing.
Through learning, individuals acquire knowledge and experience they later apply to future purchase behavior
Involvement theories:
People engage in limited information with low-involvement purchases
Extensive information search processing happens with high-involvement purchases occur
Behavioral learning theories imply that learning is a result of external stimuli
Cognitive learning theory assumes learning involves mental processes rather than through behavior
Marketers should understand how information is processed and retained through the sensory store to the short-term store and into the long-term store.
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