1. 11 Wheel of Consumer Analysis Customer Decision Marking Information Processing Wheel of Consumer Analysis Customer Decision Marking Information Processing PBB#2 http://video.pbs.org/video/1757221034 Magic and the Brain

2. 2 The Wheel of Consumer Analysis Environment Behavior Affect & Cognition Marketing Strategy The dynamic interaction of affect and cognition, behavior, and environmental events by which human beings conduct the exchange aspects of their lives. Marketing Strategy PBB#2

3. 33 Affect and Cognition Affect and cognition are different types of psychological responses customers can have in a customer environment. Customers can have both affective and cognitive responses to any element in the Wheel of Consumer Analysis. PBB#2

4. 44 Affect & Cognition The Wheel of Consumer Analysis Affect A consumer’s feelings about stimuli and events. PBB#2

5. Basic Characteristics of the Affective System A person’s affective system usually responds immediately and automatically to significant aspects of the environment. 5PBB#2

6. 6 Affect & Cognition The Wheel of Consumer Analysis Cognition The mental structures and processes involved in PBB#2

7. Consumer Cognition A major function of cognitive systems is to interpret, make sense of and understand significant aspects of personal experience. Understanding Evaluating Planning Deciding Thinking 7PBB#2

8. The Relationship Between the Affective and Cognitive Systems Affective Responses Emotions Feelings Moods Evaluations Affective System Cognitive System Environment Cognitive Responses Knowledge Meanings Beliefs 8PBB#2

9. 9 Behavior The Wheel of Consumer Analysis Behavior The physical actions of consumers that can be directly observed and measured by others. PBB#2

10. 10 Environment The Wheel of Consumer Analysis Environment Everything external to customers that influences what they think, feel, and do. It is the medium in which stimuli are placed to influence customers. PBB#2

11. 11 The Wheel of Consumer Analysis Marketing Strategy A plan designed to influence exchanges to achieve organizational objectives. Marketing Strategy PBB#2

12. 12 Marketing Strategy A set of stimuli placed in consumers’ environments designed to influence their affect, cognition, and behavior. Typically, a marketing strategy is intended to increase the probability or frequency of certain customer behaviors. PBB#2

13. Cognitive Processes in Customer Decision Making 13PBB#2

14. Important Cognitive Processes in Consumer Decision Making 1.Interpret relevant information in the environment to create personal knowledge or meaning 2.Combine or integrate this knowledge to evaluate products or possible actions and to choose among alternative behaviors 3.Retrieve product knowledge from memory to use in integration and interpretation processes 14PBB#2

15. Types of Knowledge 1. General Knowledge Concerns people’s interpretations of relevant information in their environments. General knowledge is stored in memory as propositions that link or connect two concepts. 15PBB#2

16. Examples of General Knowledge Texas weekend fun was Example 2: Episodic Nikon cameras Expensive are Example 1: Semantic 16PBB#2

17. Types of Knowledge 2. Procedural Knowledge Knowledge that is stored in memory as a production. A production is a special type of “if…, then…” proposition that links a concept or event with the resulting appropriate behavior. 17PBB#2

18. Examples of Procedural Knowledge Dissatisfied with the service of a restaurant Do not leave a tip Example 1: Example 2: If the phone rings when you are busy Do not answer it 18PBB#2

19. Sensory Memory (Senses) Sensory Memory (Senses) Working Memory (Short- term Store) Long-term Memory (Assoc. Network) Long-term Memory (Assoc. Network) External Stimuli Input Information Processing and Memory Stores 19PBB#2

20. Forgotten; Lost Processing 1.Typical 2. Special Rehearsal Chunking Sensory Memory (Senses) Sensory Memory (Senses) Working Memory (Short-term Store) Long-term Memory (Assoc. Network) Long-term Memory (Assoc. Network) External Stimuli Input 20 External Stimuli – Sensory input Sensory Memory Receptors – Gathers of external stimuli PBB#2

21. Sensory Memory (Senses) Sensory Memory (Senses) Working Memory (Short-term Store) Long-term Memory (Assoc. Network) Long-term Memory (Assoc. Network) External Stimuli Input 21 Recall (Retrieval, Activation) The process by which knowledge structures are formed and changed as consumes interpret new information and acquire new meanings and beliefs PBB#2

22. 22 Spreading Activation Usually unconscious and occurs as interrelated parts of a knowledge structure that may be activated during interpretation and integration processes (or even daydreaming) PBB#2

23. Sensory Memory (Senses) Sensory Memory (Senses) Working Memory (Short-term Store) Long-term Memory (Assoc. Network) Long-term Memory (Assoc. Network) External Stimuli Input Interpretation Make sense of or determine the meaning of the environment and one’s own behaviors and internal affective states Integration Combining knowledge to for attitude and decision judgments 23PBB#2

24. 24 Customer Reality is Not Always the Same as Objective Reality Reference Price (Point of Comparison) Spending vs Saving Endowment Effect Inertia vs Change

25. Sensory Memory (Senses) Sensory Memory (Senses) Working Memory (Short-term Store) Long-term Memory (Assoc. Network) Long-term Memory (Assoc. Network) External Stimuli Input Associative Network -- An organized structure of knowledge, meanings, and beliefs about some concept such as a brand. Nodes (concepts) Links (beliefs) Each meaning concept (node) is linked to other concepts (nodes) to form a network of associations 25PBB#2

26. Cost $94 Weight Cushioning Nike Running Shoes Feeling after a long, hard run Proud Relaxed Tired How to run lightly Lace shoes tightly Wear cushioned socks Color Swoosh symbol Status brand Long- wearing tread Can wear with jeans, too ASSOCIATIVE NETWORK 26PBB#2

27. Sensory Memory (Senses) Sensory Memory (Senses) Working Memory (Short-term Store) Long-term Memory (Assoc. Network) Long-term Memory (Assoc. Network) External Stimuli Input Learning Processes The process by which knowledge structures are formed and changed as consumes interpret new information and acquire new meanings and beliefs 27PBB#2

28. Cost $94 Weight Cushioning Nike Running Shoes Feeling after a long, hard run Proud Relaxed Tired How to run lightly Lace shoes tightly Wear cushioned socks Color Swoosh symbol Status brand Long- wearing tread Can wear with jeans, too Cognitive Learning 1. Accretion - Adding new meaning and beliefs to existing knowledge structures 28PBB#2

29. At Wilson Sporting Goods Cost $94 Weight Cushioning Nike Running Shoes Feeling after a long, hard run Proud Relaxed Tired How to run lightly Lace shoes tightly Wear cushioned socks Color Swoosh symbol Status brand Long- wearing tread Can wear with jeans, too PBB#229 2. Tuning - Parts of a knowledge structure are combined and given a new, more abstract meaning Cognitive Learning

30. 3. Restructuring Cognitive Learning 30PBB#2 Revising an entire associative network by reorganizing an old knowledge and creating entirely new meanings Nike Shoes

31. Frequency Complexity 1. Accretion 2. Tuning 3. Restructuring Cognitive Learning 31PBB#2

32. Sensory Memory (Senses) Sensory Memory (Senses) Working Memory (Short- term Store) Long-term Memory (Assoc. Network) Long-term Memory (Assoc. Network) External Stimuli Input Rehearsal Chunking Accretion Tuning Restructuring Activation Retrieval Forgotten; lost Forgotten; lost Unavailable Information Processing and Memory Stores 32PBB#2

33. PepsiSprite Sweet Moderately Sweet Fizz/Re- Freshing Cola Flavor Tasty Cola Caramel Color Caffeine Tasty Lem/Lime Flavor Clear Caffeine Free Associative Network 33PBB#2

34. PepsiSprite Sweet Moderately Sweet Fizz/Re- Freshing Cola Flavor Tasty Cola Caramel Color Caffeine Tasty Lem/Lime Flavor Clear Caffeine Free Pepsi Crystal Poor Cola Taste Associative Network 34PBB#2

35. PepsiSprite Sweet Moderately Sweet Fizz/Re- Freshing Cola Flavor Tasty Cola Caramel Color Caffeine Tasty Lem/Lime Flavor Clear Caffeine Free Diet Pepsi Woman’s Drink After Taste Sugar Free Moderately Tasty Cola Associative Network 35PBB#2

36. PepsiSprite Sweet Moderately Sweet Fizz/Re- Freshing Cola Flavor Tasty Cola Caramel Color Caffeine Tasty Lem/Lime Flavor Clear Caffeine Free Diet Pepsi After Taste Sugar Free Moderately Tasty Cola Woman’s Drink Man’s Drink Pepsi One Associative Network 36PBB#2