September 26 Readings/Class Notes – MOS
Chapter 3 – Consumer Behaviour
- not just about saving money – it's about the 'scarcity effect' – there may not be
any left if I wait to buy it – buy it now – afraid that we are going to lose out on a
Size of a shopping cart -
We are effected by people around us – tend to by more expensive products when
more people are around the retail store – setup of store ensures people can see
“Maximum 3 per customer” - people will buy more
Chart on pg 61
– many external factors that influence our brains
– physical surroundings – eg. Putting furniture in women's stores so men can
relax while their girlfriends spend more money
– Are companies wrong to create a problem in our life? Eg. My TV is fine, but I
need a better TV, not my TV broke, I need a new one.
– personal sources: people I know
– Public sources: search engines
– Marketer-dominated sources: billboards
– Objective attributes: tangible – you can touch, taste, experience eg. Demo
– Subjective attributes: soft intangibles eg. The focus is not on the product,
it's on the positive feelings you get from buying the product
Marketers figure out what stimuli works
– try to evaluate criteria and include them in the marketing mix
– The chosen brand
– From whom
**Evoked set: one of the key factors is if you remembered who they are: if you
include them in your decision process. If your brand is not in your evoked set,
they cannot win. Companies try to become one of 3 main brands that consumers consider when buying something eg. Tires, bicycles.
Behavioural Learning – psych strikes again!
Response: buy a burger
Reinforcement: tastes great!
*Negative reinforcement: yuck!
– Stimulus generalization: launch new products with common brand names
– Something that is a satisfying product comes out with a similar product: 100
times more likely to take action without thinking as much – we have been
trained to expect satisfaction
– Eg. iPod, iPad, iPhone
– Positive reinforcement repeatedly creates habit formation
– Habit – brand loyalty
– My top 3 brands? Why?
– Not the product itself, but what those products can do to be