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Consumers as individuals - Coggle Diagram
Consumers as individuals
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Perception
- def: the process by which consumers select, organise, and interpret stimuli (e.g. ads, packaging, prices, reviews) to form a meaningful picture of the world
- influenced by: past experiences, expectations, emotions, social & cultural context
- how we ascribe meaning
Why it matters in consumer behaviour:
- perception DOES NOT equate reality > what the product is may differ with what consumers believe it is
- selective exposure & attention: consumers are bombarded with marketing messages, so they filter what they notice
- interpretation shapes purchase decisions: interpret ads, packaging, or brand names through subjective lenses
- perceived value drives willingness to pay: two identical items can be valued differently based on perception (chanel handbag vs coach handbag)
Sales tactic: Reciprocity
- idea of social exchange, consumers feel compelled to return the favour
- if a brand offers value first, consumers often view the brand more positively and may feel obliged to respond—often by purchasing, promoting, or staying loyal
Marketing implications:
- door in the face technique: asking for a big favour first, when rejected then ask for a small one (most likely will not say no)
- when reciprocity is genuine, builds goodwill & trust which reduces decision anxiety
- encourages action among consumers: to click, purchase, share
- strengthens rships > create brand loyalty
Social proof:
- def: the psychological phenomenon where people look to others’ actions, opinions, or endorsements to guide their own decisions (informational influence)
- when others do something (signalling good/right decision), when others dont do something (signalling bad/wrong)
Marketing implications:
- consumers often rely on social cues: reviews, ratings, testimonials, influencer content, or popularity to reduce decision anxiety, validate choices, feel socially accepted, speed up decision-making
- celebrity endorsement strategy > especially if celeb has good reputation
- FOMO if other people buy it before you
- scarcity makes it harder for consumers to think carefully > lead to impulsive purchase
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Consumer learning: drives consumer acquisition of purchase/consumption knowledge & experience which they apply to future behaviour
- repetition of ad messages
- provide superior benefits
- association between different offerings
- learning about NPD & brand
- developing loyalty
a) Behavioural theories
- assumption: learning takes place as a result of observable responses to external stimuli
- consumers can be trained to behave in predictable ways
- 'black box' approach: interested in the inputs & outcomes of learning
1. Classical conditioning
- key assumption: consumers can be taught to behave predictably through pairing & repetition of unconditioned stimulus (US) & conditioned stimulus (CS)
- pavlov dog experiment: conditioning dog with bell + food
- application: celeb endorsement
i. Repetition: increases strength of association between US & CS
- slows the process of forgetting
- implication: ad wear-out > determining how much repetition is enough
- formulate a variation strategy (change aspects of message/format while retaining the theme)
ii. Stimulus generation: consumers respond to similar stimuli but not identical
- If a consumer learns to associate Brand A’s logo with positive feelings, they might react similarly to another brand with a similar logo, packaging, or name
- implication: brand extensions (line, format, product category), "me too" brands (Aldi products vs original products)
- can work for (leverage brand equity) or against (competitors piggybacking off another brand's success) brands
iii. Stimulus discrimination: consumer specifically selects a stimulus from among similar stimuli due to perceived differences
- consumers can differentiate between brands, even if they look or sound similar
- simply, if a consumer prefers Brand A and can tell the difference between Brand A and a look-alike competitor (Brand B)
- implication: differentiation from competitors & effective brand / product positioning (eg: Coles vs Woolworths) > builds brand loyalty, defends against copycat brands, supports premium pricing (perceived value & differences)
Limitations:
1. Passive learning assumption
- theory assumes consumers are passive learners & automatically form associations
- reality: consumers are actively researching, informed, skeptical especially towards online reviews & information
- implication: classical conditioning by itself is not enough to shape behaviour without cognitive engagement (logic, trust, credibility)
2. Short-term effectiveness
- learned associations from classical conditioning may fade over time if not reinforced
- implication: Marketers must consistently repeat and refresh stimuli (e.g. jingles, packaging, colours) to maintain consumer association
3. Ethical concerns
- classical conditioning can be manipulative, especially when targeting vulnerable groups (e.g., children or those with low media literacy)
- implication: must ensure ethical use of emotional appeals and avoid misleading associations (e.g. associating junk food with happiness and friendship)
2. Operant condition
- key assumption: stimulus that provides an optimal response is learned
- learning occurs through a trial & error process
- habits are formed as a result of rewards (positive reinforcement) received for certain behaviours/responses
Eg of freemium apps:
1. Spotify (wants consumers to pay for subscription)
- negative reinforcement: removal of unpleasant stimulus > ads, limited skips
- negative punishment: removal of pleasant stimulus > when consumers stop paying subscription, they are moved back to spotify free with ads & low-quality audio
2. Canva (app makers want consumers to pay premium to access features like better elements, designs, templates)
- positive reinforcement: Canva AI photo generator (free - only 50 portraits in a lifetime, pro - 500/month)
- negative reinforcement: removal of Canva watermarks on designs
- positive punishments (addition of unpleasant stimulus): watermark added or export disabled until paid
- negative punishment: limited access to premium designs & templates
Applications:
Reinforcement of positive consumption
- satisfaction, rebates, post-purchase contact, loyalty/reward programs
- rewarding repeat purchases to form habit of buying
- trial & free samples reward exploratory behaviour and help consumers form product preferences
When to reinforce:
- continuous (total) schedule
- fixed ratio (systematic) schedule
- random (variable ratio) schedule
Limitations:
- solely focus on inputs & outputs, considering consumer as 'black box' but...
- learning occurs without conditioning, repetition or reinforcement/reward
- consumers engage in conceptual problem solving, modelling & thinking
- consumer is not a 'black box', they engage in cognitive learning
- overlooks internal mental processes: ignoring thoughts, attitudes, motivations, and emotions.
b) Cognitive theories
- assumption: type of learning that is most characteristic of human beings is problem solving
- learning involves complex mental processing of information
- emphasises role of motivation & mental processing in desired behaviour
i. Rote learning: learning the associations between 2 or more concepts in the absence of conditioning
ii. Observational learning: consumers observe the actions of others & note reinforcements received for these behaviours
- marketers reinforce/punish consumers indirectly
Process: ARPMO
1. Attention: consumer focuses on model behaviour
2. Retention: consumer commits this behaviour to memory
3. Production: consumer has the ability to perform the behaviour
4. Motivation: a situation arises where the behaviour is useful to consumer
5. Observational learning: consumer performs the demonstrated behaviour
Eg: A viewer sees a beauty influencer using The Ordinary skincare in a TikTok video with glowing skin and clear results > viewer recalls the exact serum used and the order of product application > purchase and apply the same products at home, following the same skincare steps > motivated by influencer's before & after results > viewer integrates the skincare routine into their daily life
Memory structures:
- complex networks of evolving nodes & links
- info is constantly being organised & re-organised when new chunks of information are forged
Long-term memory organisation:
a) Episodic (order)
- specific events or personal experiences that happened at a particular time and place
- emotional & sensory in nature
- eg: consumer uses Aesop hand cream for the first time at a hotel during vacation and it smelled good > positive memory
b) Semantic (by concepts)
- general knowledge, facts, concepts, and meanings not tied to specific experiences
- eg: consumer knows SPF protects against sun damage, or that The Ordinary is an affordable, science-based skincare brand
iii. Reasoning: most complex form of cognitive learning
- one-sided vs two-sided arguments
Limitations:
- this approach artificially isolates the consumer > consumer interacts & behave in complex, real world situations/environments outside of mental processes
- underestimates the impact of feelings, moods, cultural norms, and peer influence
- real-world decisions are often emotional, impulsive, or habitual
- doesn’t always explain how loyalty, habits, or brand relationships are formed over time
- not universally applicable where literacy, time, or cognitive load are issues (e.g., elderly consumers, low-income groups)
Learning theories in the context of level of consumer involvementa) High-involvement
- occurs when the consumer is highly motivated, actively processes information, and perceives the purchase as important or risky
- relevant theory: Cognitive theory
- involves active mental processes like reasoning, evaluation, and decision-making
- consumers actively seek out information through reviews, comparing alternatives, retain knowledge
- eg: buying an acne serum to incorporate into skincare routine
marketing implications:
- educational, expert endorsement, provide comparison tools
b) Low-involvement
- occurs when the consumer has low motivation and makes a purchase with minimal thought or effort
- relevant theory: Behavioural theories (classical & operant)
- involves repetition, reinforcement, and association (celebrity endorsement) rather than active thought
- consumer forms habitual or emotional brand connections
i. classical
- pairing a product with positive stimuli (e.g., music, attractive visuals)
- eg: Nivea ad show relaxing beaches to associate lotion with calmness
ii. operant
- behaviour reinforced through rewards
- eg: loyalty program that rewards repeat purchases of a face mask with discounts
marketing implications:
- use repetition in ads (jingle)
- create strong brand cues (stimulus discrimination)
- offer incentives & coupons (buy 2 get 1 free)
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