Customer Attitudes and Behaviors

1. Customer Attitudes and Behaviors Stowe Shoemaker, PhD Cornell University Executive Education Faculty University of Houston sshoemaker@uh.edu www.stoweshoemaker.net

2. Who Are You, and Why Are You Taking This Course? Answer Questions on next couple of slides and turn into me after lunch today. Use separate paper. Consumer Attitudes and Behaviors (2008) (c) Stowe Shoemaker, Ph.D.

3. Please answer these questions • What do you hope to learn from this class? • What specific issues would you like discussed in this class? • Do you understand what your customers’ behaviors and attitudes? • How does your company use the knowledge of customer behavior to develop communication strategies?

4. Please answer these questions - continued • What keeps you awake at night? • Please tell me something unique about yourself

5. Class Times • To be addressed

6. An Organizational Framework for the Study of Consumer Behavior Group Influences Perception Learning and Memory Family Influences Consumer Decision Making Beliefs and Attitudes Personal Influences Consumer Research Market Segmentation Motivation and Emotion Social Class Culture and Microculture Personality Self-concept, and Lifestyle Adoption Diffusion

7. What is Consumer Behavior? • Involves the thoughts and feelings people experience and the actions they perform in the consumption process • Involves behavior interaction among people’s thinking, feelings, actions, and the environment

8. SYMIOTIC RELATIONSHIPS OBJECT (Product) Mirage Meeting Rooms INTERPRETANT (Meaning) SIGN (Image) Size of Meeting room Airplane

10. What is Consumer Behavior? continued • Involves exchange • People give up value to others and receive something in return • Markets need to understand • What products and brands mean to consumers • What consumers must do to purchase them • What influences shopping, purchase, and consumption

11. What Is Consumer Behavior? • Is the study of human responses to products, services, and the marketing of products and services. • Three types of responses: • affective, • cognitive, and; • behavioral responses

12. Products and services Affect (feelings) Consumer Responses Behavior (actions) Cognition (thoughts)

13. Consumer characteristics • Self-concept – basic values, goals, need • Personality traits • Expertise Intrinsic Self-relevance • Product characteristics • Time commitment • Price • Symbolic meanings • Potential for harm • Potential for poor performance • Involvement • Affective responses and activated knowledge about attributes, consequences, and values Interpretation & integration processes • Situational characteristics • Purchase situation • Intended-use situation • Time pressure • Social environment • Physical environment Situational Self-relevance

14. AFFECT

15. Types of Affective Responses

16. DIMENSIONS OF EMOTIONAL STATES AROUSING Exciting Distressing UNPLEASANT PLEASANT Relaxing Gloomy SLEEPY

17. Exercise • View the following advertisements • Write down immediately what comes to your mind after watching the advertisement • Also write down the emotions you feel

18. COMMERCIALS • Commercial # 1 • Commercial # 2 • Commercial # 3 (on the next page)

20. Affect Intensity Scale

21. Affect intensity refers to "stable individual differences in the strength with which individuals experience their emotions" (Larsen and Diener, 1987). To measure this construct, Larsen developed a 40-item scale (Larsen and Diener, 1987). Support for this hypothesis is found in Cohen and Areni (1991) who review a study by Srull (1983) which found that recall of an advertisement was greater for subjects in intense moods. Items are measured on a six-point Likert-type scale: 1 = never, 2 = almost never, 3 = occasionally, 4 = usually, 5 = almost always, 6 = always

22. Affect Intensity Scale 1. When I accomplish something difficult I feel delighted or elated. 2. When I feel happy it is a strong type of exuberance. 3. I enjoy being with other people very much. 4. I feel pretty bad when I tell a lie. 5. When I solve a small personal problem, I feel euphoric. 6. My emotions tend to be more intense than those of most people. 7. My happy moods are so strong that I feel like I'm "in heaven." 8. I get overly enthusiastic. 9. If I complete a task I thought was impossible, I am ecstatic. 10. My heart races at the anticipation of some exciting event. 11. Sad movies deeply touch me. 12. When I'm happy it's a feeling of being untroubled and content rather than being zestful and aroused.

23. Affect Intensity Scale - continued • 13. When I talk in front of a group for the first time my • voice gets shaky and my heart races. • When something good happens, I am usually much • more jubilant than others. • 15. My friends might say I'm emotional. • The memories I like the most are those of times when I • felt content and peaceful rather than zestful and enthusiastic. • 17. The sight of someone who is hurt badly affects me strongly. • 18. When I'm feeling well it's easy for me to go from being in a good • mood to being really joyful. • 19. "Calm and cool" could easily describe me. • 20. When I'm happy I feel like bursting with joy. • Seeing a picture of some violent car accident in a newspaper • makes me feel sick to my stomach.

24. Affect Intensity Scale - continued • 22. When I'm happy I feel very energetic. • 23. When I receive an award I become overjoyed. • When I succeed at something, my reaction is • calm contentment. • When I do something wrong I have strong feelings • of shame and guilt. • I can remain calm even on the most trying days. • When things are going good I feel "on top of the world." • 28. When I get angry it's easy for me to still be rational and not • overreact.

25. Affect Intensity Scale - continued • When I know I have done something very well, • I feel relaxed and content rather than excited and elated. • 30. When I do feel anxiety it is normally very strong. • 31. My negative moods are mild in intensity. • When I am excited over something I want to share • my feelings with everyone. • 33. When I feel happiness, it is a quiet type of contentment. • My friends would probably say I'm a tense or • "high-strung" person. • 35. When I'm happy I bubble over with energy. • 36. When I feel guilty, this emotion is quite strong.

26. Affect Intensity Scale - continued • I would characterize my happy moods as closer to • contentment than to joy. • 38. When someone compliments me, I get so happy I could "burst." • 39. When I am nervous I get shaky all over. • When I am happy the feeling is more like contentment • and inner calm than one of exhilaration and excitement.

27. Affect Intensity Scale - continued Reverse coding: 12, 16, 19, 24, 26, 28, 29, 31, 33, 37, 40

28. Products and services Affect (feelings) Consumer Responses Behavior (actions) Cognition (thoughts) Executive Path to Hospitality Leadership Through Learning

29. Cognition • Cognitive interpretations of physical stimuli • This sweater is made of lamb’s wool. • This car gets 28 miles per gallon • Cognitive interpretations of social stimuli • The salesperson was helpful • My friends think Pizza Hut is the best

30. Cognition • Cognitive interpretations of symbolic meanings • This car is sexy. • This style of dress is appropriate for older women. • Wearing a Rolex watch means you are successful.

31. Cognition • Cognitive interpretations of affective responses • I love Dove [ice cream] bars. • I feel guilty about not sending Mom a birthday card. • I feel mildly excited and interested in a new store

32. Cognition • Cognitive interpretations of sensations • Colors on a box or breakfast cereal • Sound of a soft-drink can being opened and poured • Sweet taste of chocolate chip cookies • Smell of your favorite cologne • Feel of your favorite pair of jeans

33. Cognition • Cognitive interpretations of behaviors • I drink a lot of Diet Pepsi • How to pay with a credit card

34. Exercise • View the following advertisements • Write down immediately what comes to your mind after watching the advertisement • Also write down what you think about

35. Commercials • Commercial # 1 • Commercial # 2 • Commercial # 3 (on next page)

37. Need For Cognition Scale -4 to 4 • 1. I really enjoy a task that involves coming up with solutions to • problems. • 2. I would prefer a task that is intellectual, difficult, and important to • one that is somewhat important but does not require much thought. • Learning new ways to think doesn't excite me very much. • 4. I usually end up deliberating about issues even when they do affect • me personally. • 5. The idea of relying on thought to get my way to the top does not • appeal to me. • 6. The notion of thinking abstractly is not appealing to me. • 7. I only think as hard as I have to. • 8. I find little satisfaction in deliberating hard and for long hours. • 9. I don't like to have the responsibility of handling a situation that • requires a lot of thinking. The Professional Development Program

38. Need For Cognition Scale 10. I feel relief rather than satisfaction after completing a task that required a lot of mental effort. 11. Thinking is not my idea of fun. 12. I try to anticipate and avoid situations where there is a likely chance I'll have to think in depth about something. 13. I prefer my life to be filled with puzzles that I must solve. 14. I would prefer complex to simple problems. 15. It's enough for me that something gets the job done; I don't care how or why it works. 16. I like tasks that require little thought once I've learned them. 17. I prefer to think about small daily projects to long-term ones. 18. I would rather do something that requires little thought than something that is sure to challenge my thinking abilities.

39. Reverse scoring: questions # 3,5,6,7,8,9,10,11,12,15,16,17

40. Consumer Environment • Environment • Everything external to consumers that influences what they thing, feel, and do

41. Environment Affective System Cognitive System • Affective responses • Emotions • Feelings • Moods • Evaluations • Cognitive responses • Knowledge • Meanings • Beliefs The Relationship between the Affective and Cognitive System Source from Peter & Olsen Consumer Behavior & Marketing Strategy

42. An Organizational Framework for the Study of Consumer Behavior Group Influences Perception Learning and Memory Family Influences Consumer Decision Making Beliefs and Attitudes Personal Influences Consumer Research Market Segmentation Motivation and Emotion Social Class Culture and Microculture Personality Self-concept, and Lifestyle Adoption Diffusion

43. Adoption

44. WOM The Purchase Cycle Brand Advocate Repeat Purchase Satisfaction Loyalty Circle Trial (Initial Purchase) Dissatisfaction • Barriers • Switching costs • Perceived risks • Lack of information Complain Switch Need Recognition Awareness/ Search/Evoked Set Why Switch?

47. Commercial • Illustration of Need #1 • Illustration of Need #2

48. Product knowledge acquired through firsthand experience Product knowledge acquired through secondhand experience Limits of attention Attention intensity Selective attention Comprehension Miscomprehension Awareness: Consumer Attention and Comprehension

49. Consumers rarely consider more than nine brands before choosing Brands available in the marketplace Consideration Set Choice (>20 brands) (7 + 2 brands) (1 brand) Bran Flakes Bran Flakes Bran Flakes Bran Flakes Bran Flakes Bran Flakes Bran Flakes Bran Flakes Bran Flakes Bran Flakes Bran Flakes Rice cereal Rice cereal Bran Flakes Rice cereal Bran Flakes Bran Flakes Bran Flakes Bran Flakes Bran Flakes Bran Flakes Bran Flakes Bran Flakes Bran Flakes Bran Flakes Rice cereal Bran Flakes Bran Flakes Rice cereal

50. Product and service trials Mail Samples In-Store Samples Product Demonstration for Durables Service Samples and Demonstrations