1. Consumer Behavior1 Information Processing

2. Consumer Behavior2 Information Processing l Sensing l Attention l Interpretation l Learning l Memory l Action

3. Consumer Behavior3 Some assumptions about how people process information l Sense making l Cognitive misers l Perception is subjective l Representations

4. Consumer Behavior4 Sensing: What Attracts Attention? l Size l Intensity l Frequency l Contrast l Uniqueness

5. Consumer Behavior5 Just Noticeable Difference JND: k = change in Intensity Intensity

6. Consumer Behavior6

7. 7 Attention l Selective attention l Automatic attention

8. Consumer Behavior8 MERE EXPOSURE Familiarity leads to liking! l Most stimuli l Works better with complex stimuli l Stronger effect with few exposures l Stronger effect with short duration l Do NOT have to recognize to like it l NET: Strongest effect when give limited thought!

9. Consumer Behavior9 Models of Memory l Sensory memory l Short term memory l Long term memory: Episodic Semantic

10. Consumer Behavior10 Characteristics of Long Term Memory l Associative network l Must be activated l Spreading activation l Allows owner to make inferences l Special way it can be organized: Means-end chains

11. Consumer Behavior11 Means-end Chains: types of meaning l Physical attributes l Abstract attributes l Functional consequences l Psychosocial consequences l Instrumental values l Terminal values

12. Consumer Behavior12 Means-end chains:examples

13. Consumer Behavior13 Laddering: a method to elicit means-end chains l What are most important attributes when person selects a brand of a product/service? l With what benefit or consequence is each attribute associated? l With what value is each benefit associated? l “You mentioned that Perrier is hghly carbonated. Why is a lot of carbonation important to you?” (repeat for each response)

14. Consumer Behavior14 Laddering l Select 2 most important factors l For each factor ask: Why is X important to you? What does X give you? l Record means-end chain for each factor

15. Consumer Behavior15 Positioning l Ways to position by attribute by use/usage situation by user by product class by competitor l Brand equity

16. Consumer Behavior16 BRAND EQUITY l Brand Loyalty l Brand Awareness l Perceived Quality l Brand Associations