Assignment - Buyer Behaviour

HK2011 Buyer Behaviour

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HK2011

Buyer Behaviour

Lecture 7:

Internal Influences:

Perception & Learning

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Learning Objectives

OBJECTIVES

Ways and influential factors of processing information Implications of perception for retail, brand and communication strategies

Types & characteristics of consumers’ learning

Learning and marketing strategies Brand image and product positioning

8–2

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Information Processing for Consumer

Decision Making

Purchase & consumption decisions

Exposure

Random Deliberate

Attention Low- involvement

High-

involvement

Interpretation Low- involvement

High-

involvement

Memory Short-term Long-term

Active problem

solving

Stored experiences,

values, decisions,

rules etc.

Perception

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Exposure

 Exposure: A stimulus comes within range of our

sensory receptor nerves

 Deliberate exposure to stimuli

 Consumer seeks information that will help achieve

certain goals

• Immediate

• Long-range

 Random exposure to stimuli

8–4

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Attention Paid to Prime-Time TV Ads

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Attention

 Attention: A stimulus activates one or more

sensory receptor nerves and the resulting

sensations go to the brain for processing

 Determined by: Stimulus

Individual: Interest, Need

Situation: Involvement

 Non-focused attention

• Hemispheric lateralisation

• Subliminal stimuli

8–6

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Stimulus Factors

 Size & Intensity: Insertion frequency

 Colour & Movement

 Position: Placement in visual field

 Isolation: Stimulus separation

 Format: Manner of message

 Contrast: Adaptation level theory

 Compressed messages: Speed to attract attention

 Information Quantity: Information overload

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Impact of Advertisement: Size vs. Colour

8–8

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Determinants of Interpretation

8–9

Interpretation = Assign meaning to sensations by individual

→ cognitive → affective

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Interpretation

 Cognitive interpretation

 Process of adding meaning

 From existing knowledge

• Semantic/lexical meaning

• Psychological/contextual meaning

 Affective interpretation

 Processing and adding meaning by feelings

triggered off by a particular stimulus

8–10

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Interpretation (cont.)

 Individual characteristics  Learning

 Expectations

 Situational characteristics (temporary)  E.g. hunger,moods, temperature etc.

 Proximity

 Stimulus characteristics  Use of semiotics (science focusing on signs to

convey meaning incl. words, pictures, forms, colours)

 Misinterpretation of marketing messages  On average = 30 %, complex task in infancy stage

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Perception and Marketing Strategy

Retail strategy: store layout, lighting, shelf space

Brand name and logo development

Media strategy: determine media use of target market

Advertisement and package design

Warning labels & package designs: ethic & legal issues

8–12

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Perception and Marketing Strategy (cont.)

 Successful advertising needs to accomplish:

 Exposure: It must reach the consumer

 Attention: It must be attended to by the consumer

 Interpretation: It must be interpreted correctly

 Memory: It must be stored and retrievable

8–13

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Learning

L E A R N I N G

Refers to any change in the content or

organisation of long-term memory

Essential to all consumption processes

Consumer behaviour is largely learned

behaviour

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Learning as a Key to Consumer Behaviour

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Learning

Learning results from information processing

and causes changes in memory

Learning is more often a feeling or emotion than

information

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Involvement and Learning

 Learning under high-involvement conditions

 Consumer has a high motivation to learn

 Learning under low-involvement conditions

 Most consumer learning occurs in a low-

involvement context (passive learning)

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Types of Learning

 Conditioning – stimulus & response  Classical conditioning: using established

relationships between stimulus and response to effect learning of same response to different stimulus

 Most common in low-involvement situations

 Operant / Instrumental conditioning: role / time of reinforcement differs

 Cognitive learning – problem solving  Iconic rote learning: repetitions

 Vicarious learning / modelling: observation of models

 Reasoning: individual engages in critical thinking

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Operant Conditioning

 Trial precedes liking Reverse is often true for classical conditioning

Product sampling is an example of this type of learning

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The Process of Shaping in Purchase Behaviour

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An Advertisement Designed to Induce Trial

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An Advertisement Using Reasoning

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General Characteristics of Learning

 Strength of Learning influenced by

 Importance - Value consumer places on information

 Involvement - High-/low, depending on importance

 Mood

 Reinforcement – Extent influences level of learning

 Stimulus repetitions – Strength & speed of learning

 Imagery – Forming of mental images

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General Characteristics of Learning

(cont.)

 Extinction = Forgetting  When reinforcement is withdrawn or learned

response no longer used

 Stimulus generalisation = Rub-off Effect  Brand equity: Value consumers assign to a brand

Close to a brand’s reputation

 Brand leverage: Brand extension/umbrella

branding

Capitalise on brand equity

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General Characteristics of Learning

(cont.)

 Stimulus discrimination

 Why your brand is different

 Response environment

 Strength of original learning affects ability to

retrieve relevant information

 Similarity of original learning environment to the

retrieval environment

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Memory

 Memory: Total accumulation of prior learning experiences

 Long-term memory

• Unlimited permanent storage

• Schematic memory

• Linking to ‘chunks’ of information

 Short-term memory

• Working memory

• Images, sight, sound, smell, taste & tactile situations

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Product Positioning Strategy

Brand image: Target market’s interpretation of product’s benefits, attributes, usage situations and characteristics

Product positioning

Perceptual mapping

Product repositioning: Change of product’s positioning in the mind of its target market using the marketing mix

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Lecture Summary

REMEMBER…

 Perception: Exposure, Attention, Interpretation

 Learning: High and low involvement

 Learning Theories

 Memory: long- and short-term

 Product Positioning Strategy

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Next Lecture…

Motivation, Personality, Emotion and Attitude

Why does Who buy?