Cb unit-vi (psychological influences on consumer decision making)

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By :
Prof. Amit Kumar

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Course: Consumer Behavior
Unit-1 Consumer in the Marketplace
Unit-2 Models of Consumer Behavior
Unit-3 Cultural Influences on Consumer Decision making
Unit-4 Sociological Influences on Consumer Decision making
Unit-5 Personal / Individual Influences on Decision making
Unit-6 Psychological Influences on Decision making
Unit-7 Consumer Decision Making Process
Unit-8 Consumer Influence & Diffusion of Innovation
Consumer Behavior
IILM-Graduate School of Management

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Consumer Behavior Psychological Influence

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Contents
1. Motivation
2. Perception
3. Learning
4. Memory
Four key psychological processes- motivation, perception,
learning and memory-fundamentally Influence consumer
responses to various marketing stimuli.

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1. Motivation
• A person has many needs at any given time. Some needs are
biogenic; they arise from physiological states of tension such as
hunger, thirst, or discomfort. Other needs are psychogenic; they
arise from psychological states of tension such as need for
recognition, esteem or belonging.
• A need becomes a motive when it is aroused to a sufficient level
of intensity. A motive is a need that is sufficiently pressing to
drive the person to act.
• Three of the best known theories of human motivation are
Sigmund Freud, Abraham Maslow and Frederich Herzberg.

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– Maslow’s Theory of Motivation
• Sought to explain why people are driven by
particular needs at particular times
– Herzberg’s Theory
• A two factor theory that distinguishes
dissatisfiers (factors that cause dissatisfaction)
and satisfiers (factors that cause satisfaction)
1. Motivation

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Maslow’s Hierarchy

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Model of Motivation Process
Unfulfilled needs
Wants & Desires
Tension Drive Behavior
Goal or
Needs
fulfillment
Tension
Reduction
Learning

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2. Perception
• Perception is the process in which an individual picks up
information through their senses, organizes it, and assigns it
meaning.
• Perception is the process of selecting, organizing and
interpreting or attaching meaning to events happening in
environment.
• Key point is that perceptions can vary widely among individuals
exposed to the same reality. One person might perceive a fast-
talking salesperson as aggressive and insincere; another , as
intelligent and helpful.
• In marketing, perception is more important than the reality, as it
is perceptions that will affect consumers’ actual behavior.
hearing, sight, smell, touch, taste

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• People can emerge with different perceptions of the
same object because of three perceptual
processes:
1. Selective Attention
• Consumers are constantly bombarded with information
and will screen out stimuli. Marketers have to work hard
to attract consumers’ notice.
• Real challenge is to explain which stimuli people will
notice. Here are some findings:
– People are more likely to notice stimuli that relate to a
current need
– People are more likely to notice stimuli that they anticipate
– People are more likely to notice stimuli whose deviations
are large in relation to the normal size of stimuli.
2. Perception

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2. Selective Distortion
• Messages do not always come across in the same way
the sender indented.
• Selective distortion is the tendency to interpret information
in a way that will fit our preconceptions.
“A stark demonstration of the power of consumer brand beliefs
is the typical result of product sampling tests. In “blind” taste
tests, one group of consumers samples a product without
knowing which brand it is, whereas another group of
consumers samples the product knowing which brand it
is. Invariably, differences arise in the opinions of the two
groups despite the fact that the two groups are literally
consuming exactly same product”.
2. Perception
Complete, Extreme

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2. Selective Distortion
• When consumers report different opinions between branded or
unbranded versions of identical products, it must be the case that
the brand and product beliefs, created by whatever means (e.g.
past experiences, marketing activity for the brand etc.) have
somehow changed their product perceptions.
• For example, one study found that consumers were equally split
in their preference for Diet Coke versus Diet Pepsi when tasting
both on blind basis. When tasting the branded versions,
however, consumer preferred Diet Coke by 65% and Diet Pepsi
by only 23% ( with the reminder seeing no differences).
• Selective distortion can work to the advantage of marketers with
strong brands .In other words, beer may seem to taste better, a
car may seem to drive more smoothly, the wait in a bank line
may seem shorter, and so on, depending on the particular
brands involved.
2. Perception

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3. Selective Retention
• People will forget much that they learn but will tend to
retain information that supports their attitudes and
beliefs.
• Because of selective retention, we are likely to remember
good points about a product we like and forget good
points about competing products.
• Selective retention again works to the advantage of
strong brands.
2. Perception

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3. Learning
• When people act, they learn. Learning describes changes in an
individual’s behavior arising from experience.
• Learning theories believe that learning is produced through the
interplay of drives, stimuli, cues, responses, and reinforcement.
– A drive is a strong internal stimulus impelling action.
– Cues are minor stimuli that determine when, where and how a person
responds.
• Suppose you buy a Dell computer. If your experience is rewarding,
your response to computers and Dell will be positively reinforced.
Later on, when you want to buy a printer, you may assume that
because Dell makes good computers, Dell also makes good
printers. In other words, you generalize your response to similar
stimuli.
Clue- Something that serves to guide or direct in the solution of a problem or mystery
Cue- A reminder or prompting, A hint or suggestion, A stimulus that signals a type of behavior

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3. Learning
• Learning theory teaches marketers that they can build demand
for a product by associating it with strong drives, using motivation
cues and providing positive reinforcement.
• The process of learning can be explained by two groups of
concepts:
1. Classical Conditioning
2. Operant Conditioning

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3. Learning
Classical Conditioning:
• It is also referred to as the stimulus response (S-R) theory.
• This is related to the experiments performed by a famous Russian
physiologist, Ivan Pavlov.
• In the experiment, when Pavlov presented a piece of meat to the dog, he
noticed a great deal of salivation (unconditional stimulus-response). On
the other hand, when he merely rang a bell, the dog had no salivation
(neutral stimulus-no response).
• In next step, Pavlov accompanied meat with the ringing of the bell. This
experiment was performed many times. Each time dog salivated. Then
Pavlov rang the bell without presenting the meat. On this the dog
salivated to the bell alone.
• It may be noted that this was originally a neutral stimulus having no
response on the behavior of the dog. However, in the new situation the
dog had become conditioned to salivate on the ringing of bell
(conditioned stimulus-response).

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3. Learning
Classical Conditioning:
• After this Pavlov went for second order conditioning i.e. he paired a
black square with the bell.
• Here again, after a number of trails with this new pairing he got the dog
to salivate to the black square alone. The original classical conditioned
stimulus (bell) becomes a re- inforcing unconditional stimulus for the new
conditioned stimulus (black square).
• In this way Pavlov went for third order conditioning also.

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3. Learning
Operant Conditioning
• Operant is defined as behavior that produces effects. Operant
conditioning implies that behavior in human beings is voluntary
and it is based on the response they receive from the
environment.
• The basis of this theory is that human beings will learn and adopt
those behavior which will be rewarding in nature.
• Operant conditioning (R-S) theory has more impact on learning
behavior than classical conditioning theory (S-R).

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3. Learning
• Learning describes changes in an individual’s
behavior arising from experience
• A belief is a descriptive thought that a person holds
about something
• An attitude describes a person’s relatively consistent
evaluations, feelings, and tendencies toward an
object or an idea

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4. Memory
• All the information and experiences individuals encounter as
they go through life can end up in their long-term memory.
• Cognitive psychologists distinguish between short-term
memory (STM)-a temporary repository of information-and
long-term memory (LTM)- a more permanent memory.
• Most widely accepted views of LTM structure is Associative
network memory model.

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4. Memory
Associative network memory model:
• This model views LTM as consisting of a set of nodes and
links. Nodes are stored information connected by links that
vary in strength. Any type of information can be stored in the
memory network, including information that is verbal, visual,
abstract or contextual.
• When a node becomes activated because external
information is being encoded (e.g. when a person reads or
hear a word or phrase) or internal information is retrieved from
LTM (e.g. when a person thinks about some concept), other
nodes are also activated if they are sufficiently strongly
associated with that node.

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4. Memory
Brand Association:
• Consistent with the associative network memory
model, consumer brand knowledge in memory can be
conceptualized as consisting of a brand node in
memory with a variety of link associations.
• Brand associations consist of all brand-related
thoughts, feelings, perceptions, images, experiences,
beliefs, attitudes, and so on that become linked to the
brand node.
• Marketing can be seen as making sure that consumers
have right types of product and services experiences
such that the right brand knowledge structures are
created and maintained in memory.

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4. Memory
Hypothetical Dole Mental Map:
• Companies such as
Procter & Gamble like to
create mental maps of
consumers that depict
their knowledge of a
particular brand in terms
of the key associations
that are likely to be
triggered in a marketing
setting.
• Figure displays a very
simple mental map
highlighting brand beliefs
for a hypothetical
consumer for the Dole
brand in the USA.
Colorful
Healthy
Hawaii
Vacation
Refreshing
Innovative
Organic
Fruits
Fun
DOLE

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4. Memory
“The world's largest producer and marketer of fresh fruit and vegetables”.

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4. Memory
Founded in Hawaii in 1851, the Company built its reputation on its commitment
to "quality, and quality, and quality." These were the words of James
Drummond Dole's "Statement of Principles," upon which he founded and
operated the Company. James Dole came to Hawaii with an initial investment
of $1,000, degrees in business and horticulture and a love of farming. With
these, he began the first successful pineapple growing and canning operation,
then called the Hawaiian Pineapple Company. Dole developed and grew the
pineapple business into Hawaii's second largest industry. In achieving his goal
of making pineapple available in every grocery store in the country, James Dole
made the name "Hawaiian" almost synonymous with "pineapple." Considered
an exotic fruit, the pineapple is the symbol of hospitality, and is often depicted
on fine furniture. After Dole began an innovative campaign of advertising with
recipes in ladies magazines, the popularity of the fruit increased and was
sought by households throughout the U.S.

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