Consumer Information Processing

1. Consumer Information Processing Perception Information Processing Motivation Involvement

2. Information Processing • Information processing involves several different cognitive processes: • Receiving information • Organizing information • Attaching meaning to information • Storing information • Retrieving information

3. Model of Information Processing System Sensory Stimuli •Sights •Sounds •Smells •Tastes •Textures Sensation Meaning Sensory Receptors Attention Interpretation Responses Sensory Memory Short-term Memory Long-term Memory Rehearsal Encoding Retrieval

4. Exposure to Sensory Stimuli • A stimulus is any input to the senses. • The stimulus characteristics are a key factor in determining what will be perceived and how it will be perceived. • Sensory receptors--eyes, ears, nose, mouth, and skin.

5. Sensation • The immediate and direct response of sensory receptors to stimuli. • How consumers react to stimuli.

6. Model of Information Processing System Sensory Stimuli •Sights •Sounds •Smells •Tastes •Textures Sensation Meaning Sensory Receptors Attention Interpretation Responses Sensory Memory Short-term Memory Long-term Memory Rehearsal Encoding Retrieval

7. Sensory Memory • Temporary storage of sensory information • High capacity • Less than 1 second (vision) or a few seconds (hearing)

8. Affecting Sensation: • Absolute threshold • The lowest level at which a stimulus can be detected 50% of the time. • Differential sensory threshold • The ability to detect changes or differences between two stimuli.

9. Affecting Sensation: • Just noticeable difference (JND) threshold • The minimum amount of difference in the intensity of a stimulus that can be detected 50% of the time. • Weber’s Law: The greater the intensity of the initial stimulus, the more the intensity has to be changed before the change will be noticed.

10. Applications of JND • Changes in packaging • Changes in serving sizes/package amounts • Changes in corporate identities (logos) • Changes in price

11. Affecting Sensation: • Sensory adaptation • The amount or level of a stimulus to which the consumer has become accustomed; the point at which consumers stop noticing or attending to the stimulus.

12. Affecting Sensation: • Subliminal persuasion • Stimuli occurring without the consumer’s awareness that affect information processing. • No evidence this has any effect on consumer behavior • Subliminal techniques • Embeds • Auditory messages

13. Attention • Allocation of cognitive capacity to an object or task. • Selective attention/selective exposure • Voluntary attention • Involuntary attention • Perceptual defense • Perceptual blocking

14. Model of Information Processing System Sensory Stimuli •Sights •Sounds •Smells •Tastes •Textures Sensation Meaning Sensory Receptors Attention Interpretation Responses Sensory Memory Short-term Memory Long-term Memory Rehearsal Encoding Retrieval

15. Short-Term Memory • Working memory • Primary work area of information processing system • Information is held only briefly, 10-30 seconds • Limited capacity, 5-9 pieces of information • Capacity is enlarged if consumer is highly involved

16. Short-Term Memory Processes • Chunking • Group several pieces of information together and treat as a set • Rehearsal • Mental repetition of information • Keeps information in ST memory longer • Assists in transfer of information to LT memory • Encoding • Assign a word or visual image to represent information

17. Short-Term Memory Problem • Information overload

18. Attention is influenced by: • Personal determinants • Need/motivation • Attitudes • Sensory adaptation • Span of attention

19. Attention is also influenced by: • Marketing actions • Surprise • Movement • Unusual sounds • Size of stimulus • Contrast effects • color

20. Interpretation • Organize and interpret information • Comprehend information • Assign meaning to information • Associated yet with short-term memory

21. Elements of Interpretation • Perceptual organization • The ways in which we perceive shapes, forms, figures, and lines in our visual world. • We view stimuli in terms of relationships with other events, sensations, or images. • Gestalt psychology • Patterns • Configurations • Wholes

23. Elements of Interpretation • Consumer expectations • Price-quality relationship • Stimulus categorization • Consumers rapidly, sometimes unconsciously categorize stimuli • Perceptual set • The readiness to perceive or act in particular ways in a situation.

24. Elements of Interpretation • Perceptual inferences • Sensory cues lead to inferences, provide meaning. • Semiotics • Study of signs and symbols and how consumers attach meaning to signs and symbols

25. Responses • Two types of consumer responses occur during the interpretation stage of information processing: • Cognitive responses • Thoughts • Affective responses • Feelings, emotions • These responses may or may not be transferred into long-term memory, depending on the extent of rehearsal and encoding that takes place in short-term memory.

26. Model of Information Processing System Sensory Stimuli •Sights •Sounds •Smells •Tastes •Textures Sensation Meaning Sensory Receptors Attention Interpretation Responses Sensory Memory Short-term Memory Long-term Memory Rehearsal Encoding Retrieval

27. Long-Term Memory • Unlimited capacity to store information • Information is constantly being organized and reorganized as new chunks of information are transferred in from ST memory • Information is stored in associative networks called schemas • Nodes • Linkages

28. Consumer Information • Tends to be stored in one of two ways: • Episodically • Semantically

29. Retrieval • Retrieval is the process whereby information is recovered from LT memory. • Spreading activation • As one node is activated, other nodes associated with it also begin to be triggered. Thus, meaning spreads across the network, bringing up concepts including competing brands and relevant attributes that are used in making decisions.

30. Factors Affecting Retrieval • Physiological • e.g., age • Mood congruence effect • Consumers are better able to access information if their mood at the time of retrieval matches their mood at the time when the information was processed.

31. Factors Affecting Retrieval • Familiarity and recall • Prior familiarity with information enhances its recall. • Salience and recall • The more important the information or the more prominent that a stimulus is in contrast to the environment, the better will be recall. • Von Restorff effect

32. Factors Affecting Retrieval • Visual vs. verbal cues • Memory of visual images tends to be better than memory of verbal information • Visual and verbal cues together will have greatest impact on ability to retrieve.

33. Factors Affecting Information Processing • Motivation • Involvement

34. Motivation • An activated state within a person that leads to goal-directed behavior. • An activated state can be the result of the perception process--i.e., a stimulus prompts problem/need recognition--and the resulting activated state drives information processing toward the achievement of some goal.

35. Example: It’s 10 o’clock pm, you’re watching TV and see an ad for a thick, juicy hamburger--it looks so good you can almost smell it. Perception of the visual stimulus (the ad) causes you to become aware of being hungry. You want to satisfy your hunger. You go to the refrigerator to scan your choices, exposing yourself to more stimuli--visual images, smells, etc. Your information processing system kicks in, attending to the stimuli, attaching meaning, perhaps retrieving information from LT memory, etc., until you find something to satisfy your cravings.

36. Model of the Motivation Process Learning Unfulfilled needs, wants, and desires Tension Drive Behavior Goal or need fulfillment Cognitive processes Tension reduction

37. Dynamic Nature of Motivation • Needs are never fully satisfied. • New needs emerge as old needs are satisfied. • People who achieve their goals set new and higher goals for themselves.

38. Classification of Motives • Physiological vs. Psychological • Conscious vs. Unconscious • Positive vs. Negative • Rational vs. Emotional

39. Motivational Theories • Several different theories exist to explain the process of motivation • General theories of motivation • Maslow’s Hierarchy of Needs • Murray’s List of Social Needs • Theory of learned needs • Expectancy x value theory

40. Maslow’s Hierarchy of Needs • Pyramid of needs that assumes consumers satisfy lower level needs before higher level needs. • Sufficiently generic to encompass most needs. • Culture and time-bound. • No way to test and measure the hierarchy.

41. Self-actualization (Self-fulfillment) Ego Needs (Prestige, status, self-esteem) Social Needs (Affection, friendship, belonging) Safety and Security Needs (Protection, order, stability) Physiological Needs (Food, water, air, shelter, sex)

42. Murray’s List of Social Needs • Based on the belief that needs are aroused in relationship with other things and are not independent of each other. Needs help to determine our behaviors. • Needs associate with inanimate objects • Acquisition • Retention • Construction

43. Social Needs, continued • Needs concerned with human power • Dominance • Deference • Autonomy • Needs concerned with affection between people • Affiliation • Nurturance • Rejection • Play

44. Theory of Learned Needs • Trio of Needs • Power • Individual’s desire to control environment. • Affiliation • Need for friendship, acceptance, and belonging. • Achievement • Need for personal accomplishment.

45. Expectancy x Value Theory • The strength of the tendency to act in a certain way depends on the strength of the expectancy that the act will be followed by a given consequence (or goal) and the value of that consequence to the individual. • Our behavior depends on what we expect to happen.

46. Involvement • The level of personal importance and/or interest evoked by a stimulus. • Personal importance • Personal relevance • Perceived risk • Personal interest

47. A High Level of Involvement... • Increases capacity of ST memory. • Increases level of attention to stimuli. • Increases the likelihood that information will be stored and retrieved. • Increases motive arousal and goal-directed behavior. • Is associated with more extensive decision making.

48. Types of Involvement • Situational • Associated with specific situation • Short-term • Enduring • Consistent interest in some situation over an extended period of time • Long-term