Pepsi A Study
Pepsi A Study
Pepsi A Study
Literature Review
CONSUMER BEHAVIOUR
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Perhaps the most useful set of categories is that of low, medium or high level models. In
this case the level refers to the level of complexity - so a low level model would be a
relatively simple representation of the phenomenon while a high level model of the
same event would be much more complex and detailed and include more variables.
In the marketing context the modeling approach has two key objectives:
1. description, explanation, prediction (and ultimately control of consume behaviors)
and/or
2. Aiding researchers in their task of developing 'better' hypotheses and theories about
the relationships and processes involved in consumer behaviour Models can be evaluated
against their ability to satisfy either or both of these objectives. Study on Consumer
Behaviour
Lower level or simple models, in contrast, fall into three broad categories - black box
models, decision process models and personal variable models.
Black Box models - do not consider internal variables. They focus on inputs and outputs
without concerning themselves with the intervening mental processes, which might
determine the outcomes.
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Personal variable models - the personal variable models omit external variables. So
these models focus on the mental processes of decision-making - internal elements and
processes such as perception, motivation, beliefs and values. One classic example of the
personal variable model is the fisheye model, summarized as
A, = B, o,
Where A0 = the attitude towards object o8, = the strength of belief about o a, = the
evaluation aspects of 6 n = the number of beliefs Study on Consumer Behaviour
Classical conditioning occurs when a stimulus that naturally elicits a response (an
unconditioned stimulus) is paired with another stimulus that does not initially elicit this
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response. Over time, the second stimulus (the conditioned stimulus) comes to elicit the
response as well
Study on Consumer Behavior
This response can also extend to other, similar stimuli in a process known as
stimulus generalization. This process is the basis for such marketing strategies as
licensing and family branding, where a consumer's positive associations with a
product are transferred to other contexts,
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later time. Some factors that influence the likelihood of retrieval include the
level of familiarity with an item, its salience (or prominence) in memory, and
whether the information was presented in pictorial or written form.
Products also play a role as memory markers: they are used by consumers to
retrieve memories about past experiences (autobiographical memories) and are often
valued for their ability to do this. This function also contributes to the use of nostalgia
in marketing strategies.
Memory for product information can be measured through either recognition or
Recall techniques. Consumers are more likely to recognize an advertisement if it is
presented to them than to recall one without being given any cues." (See Solomon 1994
137-138) Learning theories. Marketing and Involvement
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An individual learns that Amstrad Keen cooks learn about various
Iconic rote makes personal computers without makes of kitchen knives by
careful learning ever consciously focusing on PCs or reading of advertisements
with the Amstrads advertisements find enjoyable Study on Consumer Behaviour
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In the marketing context, Engel, Blackwell and Minored suggest
that this becomes:
The first step in this stage is often internal memory search to establish whether
the individual possesses enough information about the available options to make a
decision without further action.
In low involvement consumer decisions this may often be the case, but external
search is more usual with high involvement purchases.
The information search stage is also affected strongly by individual differences and
environmental factors e.g. the traits and orientation of some individual’s means that
they have the personality characteristic of caution - such people will tend to
conduct extensive and detailed information search. Similarly families and reference
groups are likely to make significant contributions to the amount and style of search
conducted.
Many of our decisions are often made on less than complete information. The
important point is that the purchaser feels that enough information has been
gathered.
In the light of the differences between high and low involvement purchasing,
the perception of the value of continued search is likely to be significantly higher
in high involvement decisions.
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The external search is dominated by marketing messages and the information
so gathered should be fed into the memory system via processes similar to the
research on Perception:
"Humans are apparently so constituted that they cannot refrain from evaluating,
judging, appraising or valuing almost everything that comes within their
purview".
Note the importance of the role of criteria in the process of evaluation - the
obvious criterion for a purchasing decision is 'did it achieve its objective?'
However a number of sub issues are involved here:
The criteria we use stem from our values, beliefs, attitudes and intentions.
However it is not unusual for people to seek a single measure that will pin down
the payoffs required. Satisfaction is affected by a number of factors - motivation,
values, expectancy, and self-image - so a variety of criteria may be necessary
against which to judge the effectiveness of our purchase. The reality appears to
be that people adopt some form of compensation strategy in which a perceived
weakness in one attribute can be offset by strength in others.
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Determine the evaluative criteria to use for judging alternatives
Decide which alternatives to consider
Assess the performance of considered alternatives
Select and apply a decision rule to make the final choice.
These criteria will usually vary in their relative importance or salience. Price
may be a Dominant dimension in some decisions and yet rather unimportant in
others. The salience of evaluative criteria depends on a host of factors: e.g.
situational, product and individual factors.
Consumers must determine the set of alternatives from which a choice will be
made (that is, the consideration set).
Consumers may also rely on their existing knowledge for judging how well
alternatives Perform along the salient evaluative criteria. The cutoffs or ranges of
acceptable values That consumers impose for evaluative criteria will strongly
determine whether a given Alternative is viewed as acceptable. Study on Consumer
Bead four
(4) Select and apply a decision rule to make the final choice
Finally, the strategies and procedures used for making the final choice are
called decision rules. Decision rules vary considerably in their complexity.
Another important distinction is between compensatory and no compensatory
decision rules.
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Non-compensatory rules:
If only one brand meets the cutoff on the most important attribute it is
chosen. If several brands meet the cutoff, then the next most important
attribute is selected and the process continues until the tie is broken.
1. Simple additive: here the consumer simply counts or adds the number of
times each alternative is judged favorably in terms of the set of sail evaluative
criteria. The alternative having the largest number of positive attributes is chosen.
2. Weighted additive: a more complex form of the compensatory rule. The
consumer engages in more refined judgments about the alternatives' performances
simple whether it is favorable or unfavorable.
The relative salience of relevant evaluative criteria is also incorporated into the
decision rule. In essence, a weighted additive rule is equivalent to the multi
attribute attitude models
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In the initial stage, one type of rule is used as a screening device to help
narrow down the choice set to a more manageable number. A second
decision rule is then applied to the remaining alternatives to make the final
choice.
Consumer Behavior focuses on how and why consumers make decisions to buy
goods and services. Consumer Behaviors research goes far beyond these facets of
consumer behavior and encompasses all of the behavior that consumers display
in searching for. Purchasing, Using, Evaluating and Disposing of products and
services that they will satisfy their needs
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conceptual framework than buyer behaviour does because it includes issues that
arise after the purchase process occurs. There are several activities included in the
definition of consumer behaviour - obtaining, consuming, and disposing.
Disposing: It includes how consumers get rid of products and packaging. Does it
affect the environment? If it does how far it is?
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