Consumer Behavior
Lecture 1 – 09/01/2025
System 1 and System 2:
System 1 (routine mode): Autopilot, routine tasks.
System 2 (reflective mode): Think about the actions, new tasks.
Sometimes at first system 2 (finding the supermarket on your preference), and when you made your
choice, going to that supermarket will become system 1 again.
Behavioral economics focuses on the contests of consumer decisions:
- What is the consumption choices environment like?
- What is the choice architecture (how the choice is presented)?
Arnould et al, 2004: individuals or groups acquiring, using and disposing of products, services, ideas
or experiences. à Consumer cart is ultimately consumerism.
Consumer (Trentman, 2016): consumer is using up food, candles and firewood.
Market Economy: We live in a mixed economy. Society in which people exchange goods and
services.
- Free market economy: supply and demand depend on price; what producers want to have,
and consumers want to pay.
- Centrally planned economy: government decides resource allocation.
- Mixed economy: part free process, part government decision. Combines aspect capitalism and
socialism. Which accepts private property and permits economic freedom in the use of capital
but also allows for governments to interfere in economic activities in order to achieve social
aims.
Why do we study consumer behavior? Because businesses want …
- to develop profitable products and services their consumers will buy.
- to communicate effectively about their products with consumers.
- To understand the reasons why and how consumers buy products.
We see in consumer behavior reinforce to trigger behavior. Positive (sticker), Negative (punishment
after late).
Factors influencing consumer behavior:
- Cultural: cultures (anthropology), social class
- Social: development, reference groups
- Personal: Life stage, occupation
- Psychological: motivation, perception, learning, beliefs and attitudes
Conceptual model: Consumer Decision Model (Engel, Blackwell, Miniard model) shows which
sections are influencing and how they’re connected with each other.
Consumer Culture Theory:
- Consumer identity projects: What do consumers do to develop their identity and how they
use consumption to mark the story of themselves.
- Marketplace cultures: how do consumers interact with the marketplace and how are their
needs served by it and how become influencers and producers of culture?
- Socio-historic patterning of consumption: how do institutions, social structures and habits in
our lives influence consumption?
, - Mass-mediated marketplace ideologies and consumers’ interpretative strategies: how are
consumers making sense of marketing messages and which responses do they develop?
Consumer Culture Theory – Research Methods:
- Ethnography: qualitative research method. Aims to understand the cultural phenomena
reflecting the knowledge and meaning systems associated with the everyday life of a cultural
group.
- Introspection: form of structured self-reflection. Examines a range of consumer practices.
- Narrative analysis/inquiry: stems from literary criticism. The consumer story is viewed as a
repository for emotional, cognitive and affective responses to brands, advertising and
interpersonal exchange.
Consumer Culture Theory – 2 research perspectives:
- Positivist perspective (objectivity, rational decision-maker, quantitative research: spss)
- Interpretist perspective (subjectivity, multiple interpretations, qualitative research:
interview)
Face of consumerism
Lecture 2 – 15/01/2025
2a. Black Box and Decision-Making
Understand system of classifying needs
Two types of Human needs:
- Biogenic: sustain physical existence: needs for food, water, air, protection and sex
- Psychogenic: motivational forces that are learned from our parents, social environment, and
interaction with others.
Henry Murray prepared an extensive list of psychogenic needs that represented the first systematic
approach to the understanding of nonbiological needs. … needs can be interrelated, can support other
needs, and can conflict with other needs. Environmental circumstances strongly influence how
psychogenic needs are manifested in behavior.
Maslow’s hierarchy-of-needs theory proposes five levels of human needs: (low – biogenic to high –
psychogenic). The lowest level of unsatisfied needs motivates a person’s behavior.
- Physiological (food, water, air, shelter, sex)
- Safety (protection, order, stability)
- Social (affection, friendship and belonging)
- Egoistic (prestige, status, self-esteem)
- Self-actualization (self-fulfillment)
Consumer decision-making process 1) Need recognition, 2) Search for Product Information, 3)
Product Evaluation, 4) Product Choice and Purchase, 5) Post purchase use and evaluation of product
6) Disposal of the product
The evoked set is the limited group of brands the consumer considers acceptable as a possible brand
choice prior to the purchasing decision. The inept set is known unacceptable brands, Inert set is known
indifferent brands, the overlooked set is all overlooked brands.
The black box represents the internal decision-making process of the buyer, who may not fully
understand all the factors influencing their choices. Within the black box, the customer considers past
experiences, beliefs, desires, and objectives (e.g. external factors: stimuli) when making a buying
decision (responses)
Ernest Dichter (1950s) based on premise that consumers are not always aware of their motivations.
Identifies underlying feelings, attitudes and emotions.
, Vance Packard’s complaints against motivational research: doesn’t solve all marketing problems,
relies heavily on a subjective interpretation, findings are not objectively confirmed
Robert Plutchik’s wheel of emotions (1980)
Neuromarketing: The application of neuroscientific methods to analyze and understand human
behavior in relation to market and marketing exchanges (lee et al, 2009)
- S1: Input > Inference (weighted relevance) > Impact (rewarding sense) > Action
- S2: Inhibition (social self) > Inference (weighted relevance)
- Hardwired connections overrule all decision-making process via > Impact (rewarding sense)
> Action
- The brain assigns value to all stimuli, short and long term
Key findings:
- Negative emotions (Fear) are stronger than positive emotions (Lust / Trust)
- Your eyes observe but your brain sees
- I, Me and Myself
Gain marketing (USA) = offering extra portion
Pain marketing (NL) = offering price discounts
2b. Involvement, Satisfaction, Dissatisfaction
Involvement: the perceived relevance of the purchase to the consumer.
Consumer decision making. Three steps:
- Input (e.g. marketing mix, sociocultural influences)
- Process (e.g. need recognition, information search, evaluation and decision rules
- Output (e.g. the purchase, use, post-purchase evaluation, trust, loyalty etc.)
Types of consumer involvement:
High involvement purchases are very important to the consumer, high degree of perceived risk, which
will result in extensive problem solving.
- Cognitive involvement, where a person is motivated to learn all she can about the product
- Product involvement, the consumer’s level of interest is making a particular purchase
- Message response involvement (advertising), the consumer’s interest is processing marketing
communications
- Ego involvement (enduring), the importance of a product to a consumer self-concept
Increase involvement:
- Appeal to hedonic needs, e.g. using sensory appeals to generate attention
o Hedonic – emotional & sensory
o Utilitarian – rational & practical
- Use novel stimuli, e.g. unusual cinematography, sudden silences etc.
- Use prominent stimuli, e.g. larger ads, more color
- Include celebrity endorsers
- Build a bond with consumers, maintain the relationship
Accelerated loyalty journey: ‘Consider > evaluate’ > (circle) buy > experience > advocate > bond >
Satisfied customers
- Loyalists: completely satisfied customers who keep purchasing (apostles, advocates,
ambassadors = provide very positive word-of-mouth about company to others).
Lecture 1 – 09/01/2025
System 1 and System 2:
System 1 (routine mode): Autopilot, routine tasks.
System 2 (reflective mode): Think about the actions, new tasks.
Sometimes at first system 2 (finding the supermarket on your preference), and when you made your
choice, going to that supermarket will become system 1 again.
Behavioral economics focuses on the contests of consumer decisions:
- What is the consumption choices environment like?
- What is the choice architecture (how the choice is presented)?
Arnould et al, 2004: individuals or groups acquiring, using and disposing of products, services, ideas
or experiences. à Consumer cart is ultimately consumerism.
Consumer (Trentman, 2016): consumer is using up food, candles and firewood.
Market Economy: We live in a mixed economy. Society in which people exchange goods and
services.
- Free market economy: supply and demand depend on price; what producers want to have,
and consumers want to pay.
- Centrally planned economy: government decides resource allocation.
- Mixed economy: part free process, part government decision. Combines aspect capitalism and
socialism. Which accepts private property and permits economic freedom in the use of capital
but also allows for governments to interfere in economic activities in order to achieve social
aims.
Why do we study consumer behavior? Because businesses want …
- to develop profitable products and services their consumers will buy.
- to communicate effectively about their products with consumers.
- To understand the reasons why and how consumers buy products.
We see in consumer behavior reinforce to trigger behavior. Positive (sticker), Negative (punishment
after late).
Factors influencing consumer behavior:
- Cultural: cultures (anthropology), social class
- Social: development, reference groups
- Personal: Life stage, occupation
- Psychological: motivation, perception, learning, beliefs and attitudes
Conceptual model: Consumer Decision Model (Engel, Blackwell, Miniard model) shows which
sections are influencing and how they’re connected with each other.
Consumer Culture Theory:
- Consumer identity projects: What do consumers do to develop their identity and how they
use consumption to mark the story of themselves.
- Marketplace cultures: how do consumers interact with the marketplace and how are their
needs served by it and how become influencers and producers of culture?
- Socio-historic patterning of consumption: how do institutions, social structures and habits in
our lives influence consumption?
, - Mass-mediated marketplace ideologies and consumers’ interpretative strategies: how are
consumers making sense of marketing messages and which responses do they develop?
Consumer Culture Theory – Research Methods:
- Ethnography: qualitative research method. Aims to understand the cultural phenomena
reflecting the knowledge and meaning systems associated with the everyday life of a cultural
group.
- Introspection: form of structured self-reflection. Examines a range of consumer practices.
- Narrative analysis/inquiry: stems from literary criticism. The consumer story is viewed as a
repository for emotional, cognitive and affective responses to brands, advertising and
interpersonal exchange.
Consumer Culture Theory – 2 research perspectives:
- Positivist perspective (objectivity, rational decision-maker, quantitative research: spss)
- Interpretist perspective (subjectivity, multiple interpretations, qualitative research:
interview)
Face of consumerism
Lecture 2 – 15/01/2025
2a. Black Box and Decision-Making
Understand system of classifying needs
Two types of Human needs:
- Biogenic: sustain physical existence: needs for food, water, air, protection and sex
- Psychogenic: motivational forces that are learned from our parents, social environment, and
interaction with others.
Henry Murray prepared an extensive list of psychogenic needs that represented the first systematic
approach to the understanding of nonbiological needs. … needs can be interrelated, can support other
needs, and can conflict with other needs. Environmental circumstances strongly influence how
psychogenic needs are manifested in behavior.
Maslow’s hierarchy-of-needs theory proposes five levels of human needs: (low – biogenic to high –
psychogenic). The lowest level of unsatisfied needs motivates a person’s behavior.
- Physiological (food, water, air, shelter, sex)
- Safety (protection, order, stability)
- Social (affection, friendship and belonging)
- Egoistic (prestige, status, self-esteem)
- Self-actualization (self-fulfillment)
Consumer decision-making process 1) Need recognition, 2) Search for Product Information, 3)
Product Evaluation, 4) Product Choice and Purchase, 5) Post purchase use and evaluation of product
6) Disposal of the product
The evoked set is the limited group of brands the consumer considers acceptable as a possible brand
choice prior to the purchasing decision. The inept set is known unacceptable brands, Inert set is known
indifferent brands, the overlooked set is all overlooked brands.
The black box represents the internal decision-making process of the buyer, who may not fully
understand all the factors influencing their choices. Within the black box, the customer considers past
experiences, beliefs, desires, and objectives (e.g. external factors: stimuli) when making a buying
decision (responses)
Ernest Dichter (1950s) based on premise that consumers are not always aware of their motivations.
Identifies underlying feelings, attitudes and emotions.
, Vance Packard’s complaints against motivational research: doesn’t solve all marketing problems,
relies heavily on a subjective interpretation, findings are not objectively confirmed
Robert Plutchik’s wheel of emotions (1980)
Neuromarketing: The application of neuroscientific methods to analyze and understand human
behavior in relation to market and marketing exchanges (lee et al, 2009)
- S1: Input > Inference (weighted relevance) > Impact (rewarding sense) > Action
- S2: Inhibition (social self) > Inference (weighted relevance)
- Hardwired connections overrule all decision-making process via > Impact (rewarding sense)
> Action
- The brain assigns value to all stimuli, short and long term
Key findings:
- Negative emotions (Fear) are stronger than positive emotions (Lust / Trust)
- Your eyes observe but your brain sees
- I, Me and Myself
Gain marketing (USA) = offering extra portion
Pain marketing (NL) = offering price discounts
2b. Involvement, Satisfaction, Dissatisfaction
Involvement: the perceived relevance of the purchase to the consumer.
Consumer decision making. Three steps:
- Input (e.g. marketing mix, sociocultural influences)
- Process (e.g. need recognition, information search, evaluation and decision rules
- Output (e.g. the purchase, use, post-purchase evaluation, trust, loyalty etc.)
Types of consumer involvement:
High involvement purchases are very important to the consumer, high degree of perceived risk, which
will result in extensive problem solving.
- Cognitive involvement, where a person is motivated to learn all she can about the product
- Product involvement, the consumer’s level of interest is making a particular purchase
- Message response involvement (advertising), the consumer’s interest is processing marketing
communications
- Ego involvement (enduring), the importance of a product to a consumer self-concept
Increase involvement:
- Appeal to hedonic needs, e.g. using sensory appeals to generate attention
o Hedonic – emotional & sensory
o Utilitarian – rational & practical
- Use novel stimuli, e.g. unusual cinematography, sudden silences etc.
- Use prominent stimuli, e.g. larger ads, more color
- Include celebrity endorsers
- Build a bond with consumers, maintain the relationship
Accelerated loyalty journey: ‘Consider > evaluate’ > (circle) buy > experience > advocate > bond >
Satisfied customers
- Loyalists: completely satisfied customers who keep purchasing (apostles, advocates,
ambassadors = provide very positive word-of-mouth about company to others).
