Types of consumers – Consumer Behaviour

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Automatic Consumers, in a low involvement situation, Behave in an automatic way, ‘mindlessly Heuristics (mental shortcuts) Prediction, for likelihood Judgments Anchor-adjustment; adjusting according to a number given even if it has nothing to do with the prediction Persuasion, for attitude, beliefs Price-quality (naturally think higher price = better quality), advertised products and those with endorsements are of better quality

Influence for behavior

Even poor reasons are accepted because they sound legitimate to a person in a mindless state’ Placebo information is when you have no real reason but rather, you are Just using the word ‘because’ to sound like you have a reason. Placebo information increases the level of compliance with a small request such as photocopying 5 sheets of paper. However, it does not hold for large requests because consumers are no longer in the ‘mindless’ state

2. Commitment and consistency

People wish to appear committed and consistent Foot in the door technique Ask for small favor then ask for a bigger one, they are more likely to adhere to the gig request because they want to appear consistent (since I have accepted the first, I will accept the next)

Low-balling technique ‘bait and switch’, consumers whom have already decided on a purchase and committed to it may still go through with the purchase even if conditions are changed (or you hide certain conditions from the consumers, but if they have already agreed to your request they are more likely to accept the ‘new conditions’ you mention) you continue feeling obliged to accept the terms because you want to appear consistent.

You would never have agreed to the ‘new conditions’, but because oh have already committed to it, you agree to the ‘new conditions’. Commitment makes consumers think of several reasons favoring choice (mere thought’ effect)

3. Reciprocate Consumers feel obliged to return favors, despite how small they are Reasonable requests should be met with favorable responses Inexpensive free gifts can cause obligation to reciprocate Door-in-the-face large requests followed by small requests can seem reasonable (opposite of the foot- in-the-door technique) you are being considerate by receding your request, hence hey feel obliged to give in as well example: volunteer for 2 years or bring kids to the zoo? Notations:

1) ask directly if they can bring kids to the zoo Consumer Behavior By Kenneth-Font

2) ask tort 2 yr volunteering then the zoo (higher %3) control: telling the subjects both and asking if they are willing to help

That’s-not-all just prior to buy-no buy decision, deal is sweetened, providing an “unarguable” reason to buy they give you more free gifts when you are deciding whether you buy or not, you feel obliged to buy since they are doing you AU favor by giving you more you should reciprocate by purchasing

Multiple-Deescalating-Requests Even-a-penny

4. Scarcity Things that appear to be scarce are more valuable

5. Social validation others’ preferences predict my preferences might explain why restaurants do not Just increase price to earn additional surplus from patrons, as long queues or wait times are evidence for quality There is social value to having queues by deliberately keeping prices low enough (instead of achieving optimal price so that QED = Ass)

6. Liking affect for the salesperson can translate to affect for the product similarity impression management ingratiation making someone like you by flattering him/her positive indirect associations messengers of good/bad news

7. Authority persons in authority or who appear to have the power to give rewards or punishment can be very persuasive cues such as uniforms, titles can create the illusion of authority managerial implication: sales people wear white coats Amalgam’s experiment CULTURAL INFLUENCES Influences of demographic variables Age, income, education distribution Culture

-Accumulation of shared meanings, rituals,

norms and traditions -Culture is a society’s personality, including both abstract ideas such as values and ethics, and material objects and services such as automobiles, clothing, food, art and sports a society produces Culture as…

Content Process of transferring of meaning to products and brands CULTURE AS CONTENT

Content includes beliefs, attitudes, goals and values meaning of numbers? (13 as bad luck, 4 as die) rules, customs, norms how they greet each other? Meanings of institutions (marriage, school, religious institutions, Government, political parties) what does marriage mean to them? Physical objects used by constituents Content is constantly changing Levels of cultural influences shared meanings of members of a continent “the Asian culture” country “Italian culture” region “Southern China” ethnicity “Singapore Malay’ age “Generation X” culture language group “French” or “Tamil” culture People who speak the same languages listen to same songs, movies, books, etc. Even if country is different, culture exposed to is similar other reference group NUNS was SUM culture

The Wang clan culture The heartlands culture created by literature, media, myths, folklore, marketing common history/shared experiences, norms, values MYTHS Stories with symbolic elements that represent the shared emotions/ideals of a culture Myths sends vivid messages about cultural no-nose Story characteristics Conflict between opposing forces Outcome is moral guide for people Myth reduces anxiety by providing guidelines Tells you what are the qualities of a hero, a good person, a bad person etc Norms in culture Enacted norms are specifically chosen Legal, something people have all agreed upon E. G. Red for danger, stop signs

Coercive norms are discovered as we interact Witt people in the culture Customs: arms handed down from the past that control basic behavior E. G. How do you greet each other in public? (some kiss as a form of greeting, some females do not shake hands w males) How do you celebrate various ceremonies (e. G. First year birthday)

Mores: custom with a strong moral overtone E. G. Holding hands in public may be frowned upon in some places Conventions: norms regarding the conduct of everyday life E. G. Order of serving various courses in a meal (e. G. Soup first in Western meals); using “Madam” versus “Mrs.. ” in Singapore as a prefix for a married woman

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