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Wheel of Consumer AnalysisCustomer Decision Marking
Information Processing
Wheel of Consumer AnalysisCustomer Decision Marking
Information ProcessingPBB#2
http://video.pbs.org/video/1757221034Magic and the Brain
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The Wheel ofConsumer Analysis
Environment
Beh
avior
Affect
&
Cognition
Marketing Strategy
The dynamic interaction of• affect and cognition, • behavior, and • environmental events
by which human beings conduct the exchange aspects of their lives.
Marketing
Strategy
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Affect and Cognition
• Affect and cognition are different types of psychological responses customers can have in a customer environment.
• Customers can have both affective and cognitive responses to any element in the Wheel of Consumer Analysis.
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Aff
ect &
C
ogni
tion
The Wheel ofConsumer Analysis
Affect
A consumer’s feelings about
stimuli and events.
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Basic Characteristics of the Affective System
A person’s affective system usually responds immediately and automatically to significant aspects of the environment.
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Aff
ect &
C
ogni
tion
The Wheel ofConsumer Analysis
Cognition
The mental structures and processes
involved in
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Consumer Cognition
A major function of cognitive systems is to interpret, make sense of and understand
significant aspects of personal experience.
• Understanding• Evaluating• Planning• Deciding• Thinking
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The Relationship Between the Affective and Cognitive Systems
Affective Responses
EmotionsFeelingsMoods
Evaluations
Affective System
CognitiveSystem
Environment
CognitiveResponses
KnowledgeMeanings
Beliefs
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Beh
avior
The Wheel ofConsumer Analysis
Behavior
The physical actions of consumers that can be directly observed and measured by others.
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Environment
The Wheel ofConsumer Analysis
Environment
Everything external to customers that
influences what they think, feel, and do.
It is the medium in which stimuli are placed to influence customers.PBB#2
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The Wheel ofConsumer Analysis
Marketing Strategy
A plan designed to influence exchanges
to achieve organizational
objectives.
Marketing Strategy
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Marketing Strategy
A set of stimuli placed in consumers’ environments designed to influence their affect, cognition, and behavior.
Typically, a marketing strategy is intended to increase the probability or frequency
of certain customer behaviors.
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Important Cognitive Processes in Consumer Decision Making
1. Interpret relevant information in the environment to create personal knowledge or meaning
2. Combine or integrate this knowledge to evaluate products or possible actions and to choose among alternative behaviors
3. Retrieve product knowledge from memory to use in integration and interpretation processes
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Types of Knowledge
1. General Knowledge
Concerns people’s interpretations of relevant information in their
environments.
General knowledge is stored in memory as propositions that link
or connect two concepts.
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Examples of General Knowledge
Texas weekend
fun
was
Example 2: Episodic
Nikon cameras Expensiveare
Example 1: Semantic
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Types of Knowledge
2. Procedural Knowledge
Knowledge that is stored in memory as a production.
A production is a special type of “if…, then…” proposition that links a concept or event with the resulting appropriate
behavior.
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Examples of Procedural Knowledge
Dissatisfied with the service of a
restaurant
Do not leave a tip
Example 1:
Example 2:
If the phone rings when you are
busy
Do notanswer it
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Sensory Memory(Senses)
Sensory Memory(Senses)
Working Memory (Short-term
Store)
Working Memory (Short-term
Store)
Long-term Memory(Assoc.
Network)
Long-term Memory(Assoc.
Network)
ExternalStimuliInput
Information Processingand Memory Stores
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Forgotten; Lost
Processing
1.Typical
2. Special •Rehearsal•Chunking
Sensory Memory(Senses)
Sensory Memory(Senses)
Working Memory
(Short-term Store)
Working Memory
(Short-term Store)
Long-term Memory(Assoc.
Network)
Long-term Memory(Assoc.
Network)
ExternalStimuliInput
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ExternalStimuli – Sensoryinput
Sensory Memory Receptors – Gathers of external stimuli
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Sensory Memory(Senses)
Sensory Memory(Senses)
Working Memory
(Short-term Store)
Working Memory
(Short-term Store)
Long-term Memory(Assoc.
Network)
Long-term Memory(Assoc.
Network)
ExternalStimuliInput
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Recall (Retrieval, Activation)The process by which knowledge structures are formed and changed as consumes interpret new information and acquire new meanings and beliefs
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Spreading Activation
Usually unconscious and occurs as interrelated parts of a knowledge
structure that may be activated during interpretation and integration processes
(or even daydreaming)
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Sensory Memory(Senses)
Sensory Memory(Senses)
Working Memory
(Short-term Store)
Working Memory
(Short-term Store)
Long-term Memory(Assoc.
Network)
Long-term Memory(Assoc.
Network)
ExternalStimuliInput
InterpretationMake sense of or determine the meaning of the environment and one’s own behaviors and internal affective states
IntegrationCombining knowledge to for attitude and decision judgments
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Customer Reality is Not Always the Same as Objective Reality
• Reference Price (Point of Comparison)
• Spending vs Saving
• Endowment Effect• Inertia vs Change
Sensory Memory(Senses)
Sensory Memory(Senses)
Working Memory
(Short-term Store)
Working Memory
(Short-term Store)
Long-term Memory(Assoc.
Network)
Long-term Memory(Assoc.
Network)
ExternalStimuliInput
Associative Network -- An organized structure of knowledge, meanings, and beliefs about some concept such as a brand.
Nodes (concepts)Links (beliefs)
Each meaning concept (node) is linked to other concepts (nodes) to form a network of associations
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Cost $94 Weight
CushioningNike Running
Shoes
Feelingafter a long,
hard run
Proud
RelaxedTired
How torun
lightlyLaceshoestightly
Wearcushioned
socks
Color
Swooshsymbol
Statusbrand
Long-wearing
treadCan wearwith jeans,
too
ASSOCIATIVE NETWORK
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Sensory Memory(Senses)
Sensory Memory(Senses)
Working Memory
(Short-term Store)
Working Memory
(Short-term Store)
Long-term Memory(Assoc.
Network)
Long-term Memory(Assoc.
Network)
ExternalStimuliInput
Learning ProcessesThe process by which knowledge structures are formed and changed as consumes interpret new information and acquire new meanings and beliefs
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Cost $94 Weight
CushioningNike Running
Shoes
Feelingafter a long,
hard run
Proud
RelaxedTired
How torun
lightlyLaceshoestightly
Wearcushioned
socks
Color
Swooshsymbol
Statusbrand
Long-wearing
treadCan wearwith jeans,
too
Cognitive Learning
1. Accretion - Adding new meaning and beliefs to existing knowledge structures
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At WilsonSporting Goods
Cost $94 Weight
CushioningNike Running
Shoes
Feelingafter a long,
hard run
Proud
RelaxedTired
How torun
lightlyLaceshoestightly
Wearcushioned
socks
Color
Swooshsymbol
Statusbrand
Long-wearing
treadCan wearwith jeans,
too
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2. Tuning - Parts of a knowledge structure are combined and given a new, more abstract meaning
Cognitive Learning
3. RestructuringCognitive Learning
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Revising an entire associative network by reorganizing an old knowledge and creating
entirely new meanings
Nike Shoes
Sensory Memory(Senses)
Sensory Memory(Senses)
Working Memory (Short-term
Store)
Working Memory (Short-term
Store)
Long-term Memory(Assoc.
Network)
Long-term Memory(Assoc.
Network)
ExternalStimuliInput
RehearsalChunking
AccretionTuning
Restructuring
ActivationRetrieval
Forgotten; lost
Forgotten; lost
Unavailable
Information Processing and Memory Stores
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Pepsi Sprite
Sweet ModeratelySweet
Fizz/Re-Freshing
ColaFlavor
TastyCola
CaramelColor
CaffeineTasty
Lem/Lime
Lem/LimeFlavor
Clear
CaffeineFree
Associative Network
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Pepsi Sprite
Sweet ModeratelySweet
Fizz/Re-Freshing
ColaFlavor
TastyCola
CaramelColor
CaffeineTasty
Lem/Lime
Lem/LimeFlavor
Clear
CaffeineFree
PepsiCrystal
Poor ColaTaste
Associative Network
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Pepsi Sprite
Sweet ModeratelySweet
Fizz/Re-Freshing
ColaFlavor
TastyCola
CaramelColor
CaffeineTasty
Lem/Lime
Lem/LimeFlavor
Clear
CaffeineFree
DietPepsi
Woman’sDrink
AfterTaste
SugarFree
ModeratelyTasty Cola
Associative Network
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