Consumer Behavior - BM01
Introduction - Lecture 1 (6.09.2023)
consumer decision process model:
1. need recognition
a. What is a need? - difference between actual state and desired state > when the
desired state changes, a need is created. The gap between actual and desired state
creates discomfort and tension. Tension in turns motivates individuals to behave in
ways that can reduce or eliminate the gap
2. search for information
a. internal: retrieval from memory
b. external:
i. marketer sources: advertising, company websites, stores, salespeople,
brochures
ii. non-marketer sources: consumer organizations, government, media
information processing:
both external and internal include perception: exposure - attention - interpretation. Once we
perceive things, we have to elaborate the information.
1
,Amount of information processing applied affects how detailed research is, how motivated they are
and what they look for. > systematic search eventually becomes heuristic search: first time you are
systematic, cause it's the first time and you need more info. Once we know information, it’s
normalized and therefore heuristic (i.e. after a drivers license, you are not as careful, cause you know
how to drive).
c. heuristic search (Limited Problem Solving (LPS): ad-hoc; convenience-based; relies on
rules of thumb > more affective and emotional processing. Also, something we are
used to looking for (ex. buying toothpaste at supermarket)
i. less risk, low level of involvement, more knowledge, less time
d. systematic search (Extended Problem Solving (EPS): organized; comprehensive;
effortful > more organized decisional process
i. more risk, high level of involvement, less knowledge, more time (ex. looking
for a house)
consideration of options:
e. consideration set = options that will be considered;
i. the set of brands actively considered at the time of choice
f. evoked set = options one can recall;
g. awareness set = options one is aware of;
h. universal set = all possible options
2 laws of marketing: choice outcomes are more influenced by content of consideration set
than by processing of considered alternatives
1. For a customer to choose action A (e.g. brand A), Brand A must be considered
2. In order for a customer to choose action A (e.g. brand A), the customer must fail to
consider a brand he/she likes better than Brand A
Mental categories & co-occurrence in consideration set
2
,3. pre-purchase evaluation of alternatives
a. Evaluation criteria, judgment models or decision rules
i. compensatory models
ii. non-compensatory models: things analogous to heuristic search
From Limited Problem Solving (LPS) to Extended Problem Solving (EPS): more effort and time
spent on decision; more information gathered; more processing of information; more
alternatives considered; more attributes considered
b. When do we engage in LPS?
i. limited importance of product (low-risk)
ii. limited availability of time/resources
iii. similarity of alternatives > indifference
4. purchase
a. we decide on:
i. purchase timing (immediate or delayed)
ii. mode of purchase (web, store, catalog)
iii. place/store
iv. quantity
b. after choice is made, purchases can be modified
i. product availability
ii. point-of-purchase displays
iii. other influences
5. consumption
a. timing, frequency, volume of use
i. importance of packaging (storage)
ii. affects satisfaction
b. mode of use:
i. proper use (follows instructions)
ii. alternate uses - multifunctionality of object purchased
6. post-consumption evaluation
a. expectations are crucial:
i. satisfaction: product meets or exceeds expected performance
3
, ii. dissatisfaction: product performs below expectations
b. 3 sources of consumption value
i. anticipatory consumption
ii. the act of consuming
iii. enjoying memory of past consumption
7. disposal
Consumer Memory and Learning - Lecture 2 (7.09.2023)
Memory plays a role at every stage of the consumer decision process model.
For something to enter our memory, it has to be a sensory input in principle. Memory system:
1. sensory memory (5-3s duration) - first answer to a stimulus/sensory input
2. working memory (STM) - something that you can look into (lasts 10-15s) - working memory
capacity seems to be decreasing as we are not required to keep as much information in mind
a. limited duration
b. limited capacity
i. our ability to code something in our memory depends on ability to connect
new information to a memory we already have
3. long-term memory (LTM) -
a. unlimited duration
b. unlimited capacity
c. efficient organization
keep components in memory:
1. attention
2. retrieval - memory seems to have infinite capacity on long term memory. is not hard to keep
information, is hard to find it again in ou memory when we need it
associative network
How is information stored in LTM?
- associative network: associations may emerge from personal experience, advertising cues,
other people’s experiences etc => associative network is all the info you have in memory
that can be used
4
Introduction - Lecture 1 (6.09.2023)
consumer decision process model:
1. need recognition
a. What is a need? - difference between actual state and desired state > when the
desired state changes, a need is created. The gap between actual and desired state
creates discomfort and tension. Tension in turns motivates individuals to behave in
ways that can reduce or eliminate the gap
2. search for information
a. internal: retrieval from memory
b. external:
i. marketer sources: advertising, company websites, stores, salespeople,
brochures
ii. non-marketer sources: consumer organizations, government, media
information processing:
both external and internal include perception: exposure - attention - interpretation. Once we
perceive things, we have to elaborate the information.
1
,Amount of information processing applied affects how detailed research is, how motivated they are
and what they look for. > systematic search eventually becomes heuristic search: first time you are
systematic, cause it's the first time and you need more info. Once we know information, it’s
normalized and therefore heuristic (i.e. after a drivers license, you are not as careful, cause you know
how to drive).
c. heuristic search (Limited Problem Solving (LPS): ad-hoc; convenience-based; relies on
rules of thumb > more affective and emotional processing. Also, something we are
used to looking for (ex. buying toothpaste at supermarket)
i. less risk, low level of involvement, more knowledge, less time
d. systematic search (Extended Problem Solving (EPS): organized; comprehensive;
effortful > more organized decisional process
i. more risk, high level of involvement, less knowledge, more time (ex. looking
for a house)
consideration of options:
e. consideration set = options that will be considered;
i. the set of brands actively considered at the time of choice
f. evoked set = options one can recall;
g. awareness set = options one is aware of;
h. universal set = all possible options
2 laws of marketing: choice outcomes are more influenced by content of consideration set
than by processing of considered alternatives
1. For a customer to choose action A (e.g. brand A), Brand A must be considered
2. In order for a customer to choose action A (e.g. brand A), the customer must fail to
consider a brand he/she likes better than Brand A
Mental categories & co-occurrence in consideration set
2
,3. pre-purchase evaluation of alternatives
a. Evaluation criteria, judgment models or decision rules
i. compensatory models
ii. non-compensatory models: things analogous to heuristic search
From Limited Problem Solving (LPS) to Extended Problem Solving (EPS): more effort and time
spent on decision; more information gathered; more processing of information; more
alternatives considered; more attributes considered
b. When do we engage in LPS?
i. limited importance of product (low-risk)
ii. limited availability of time/resources
iii. similarity of alternatives > indifference
4. purchase
a. we decide on:
i. purchase timing (immediate or delayed)
ii. mode of purchase (web, store, catalog)
iii. place/store
iv. quantity
b. after choice is made, purchases can be modified
i. product availability
ii. point-of-purchase displays
iii. other influences
5. consumption
a. timing, frequency, volume of use
i. importance of packaging (storage)
ii. affects satisfaction
b. mode of use:
i. proper use (follows instructions)
ii. alternate uses - multifunctionality of object purchased
6. post-consumption evaluation
a. expectations are crucial:
i. satisfaction: product meets or exceeds expected performance
3
, ii. dissatisfaction: product performs below expectations
b. 3 sources of consumption value
i. anticipatory consumption
ii. the act of consuming
iii. enjoying memory of past consumption
7. disposal
Consumer Memory and Learning - Lecture 2 (7.09.2023)
Memory plays a role at every stage of the consumer decision process model.
For something to enter our memory, it has to be a sensory input in principle. Memory system:
1. sensory memory (5-3s duration) - first answer to a stimulus/sensory input
2. working memory (STM) - something that you can look into (lasts 10-15s) - working memory
capacity seems to be decreasing as we are not required to keep as much information in mind
a. limited duration
b. limited capacity
i. our ability to code something in our memory depends on ability to connect
new information to a memory we already have
3. long-term memory (LTM) -
a. unlimited duration
b. unlimited capacity
c. efficient organization
keep components in memory:
1. attention
2. retrieval - memory seems to have infinite capacity on long term memory. is not hard to keep
information, is hard to find it again in ou memory when we need it
associative network
How is information stored in LTM?
- associative network: associations may emerge from personal experience, advertising cues,
other people’s experiences etc => associative network is all the info you have in memory
that can be used
4
