Consumption Behavior

Entire Population Users Nonusers When is it Consumed? Where is it Consumed? How is it Consumed? How much is Consumed? Proximity to purchase Time of day Situation A Situation B Usage 1 Usage 2 Heavy User Moderate User Light User

Consumption Experience Purchase Need Product Purchase Product Consumption Receiving positive outcomes Positive Reinforcement Purchase Need Product Purchase Product Consumption Avoiding/ reducing negative outcomes Negative Reinforcement Purchase Need Product Purchase Product Consumption Receiving negative outcomes Punishment

Shaping Consumer’s interpretation of the consumption experience E.g. Some of you are led to anticipate that a coffee they are about to drink it is bitter tasting, but the rest of you are not led to expect this. All of you then drink the same coffee. A study testing exactly this situation showed that, when asked to rate the coffee’s bitterness, those expecting a bitter coffee rated the coffee as more bitter than those not expecting bitterness.

Consumption norms and rituals Consumption norms represent informal rules that govern our consumption behavior. E.g. gifts representing expressions of love are exchanged on valentine’s day. Consumption rituals are defined as “a type of expressive, symbolic activity constructed of multiple behaviors that occur in a fixed, episodic sequence, and that tend to be repeated over time”.

Compulsive Consumption Compulsive consumption is defined as a response to an uncontrollable drive or desire to obtain, use or experience a feeling, substance, or activity that leads an individual to repetitively engage in a behavior that will ultimately cause harm to the individual and possibly others.

Understanding consumption through Ethnography Ethnography involves describing and understanding consumer behavior by interviewing and observing consumers in real world situations. Shadowing: Observing people Behavioral Mapping: Photographing people Consumer Journey: Keeping track of all the interactions a consumer has with a product Camera Journals: Asking consumers to keep visual diaries of their activities and impressions relating to a product Extreme user interview: Talking to people who really know about a product and evaluating their experience using it. Storytelling: Prompting people to tell personal stories about their consumption experience Un focus Groups: Interviewing a diverse group of people.

Post Consumption Evaluations Satisfied Dissatisfied (can lead to complaints and lawsuits) Importance of Satisfaction Influences repeat buying Shapes word of mouth and word of mouse communication Lowers consumer’s price sensitivity Implications for customer recruitment Ultimately affects shareholder value

What determines Satisfaction? Product performance Consumption feelings Expectations If product delivers less than expected, Negative Disconfirmation Regret Rage When the product provides more than expected, Positive confirmation When performance matches expectation, Confirmation.