Consumer Behaviour

Topics: Ritual, Sociology, Meaning of life Pages: 8 (1519 words) Published: October 11, 2013
SOCIAL INFLUENCES
Cialdini’s 7 principles

1. Automaticity
Consumers, in a low involvement situation, Behave in an automatic way, ‘mindlessly’ Heuristics (mental shortcuts)
Prediction, for likelihood judgements
Anchor-adjustment; adjusting according to a number given even if it has nothing to do with the prediction Persuasion, for attitude, beliefs
Price-quality (naturally think higher price = better quality), advertized products and those with endorsements are of better quality Influence for behaviour
Even poor reasons are accepted because they sound legitimate to a person in a ‘mindless state’ Placebo information is when you have no real reason but rather, you are just using the word ‘because’ to sound like you have a reason. Placebo information increases the level of compliance with a small request such as photocopying 5 sheets of paper. However, it does not hold for large requests because consumers are no longer in the ‘mindless’ state 2. Commitment and consistency

People wish to appear committed and consistent
Foot in the door technique
Ask for small favour then ask for a bigger one, they are more likely to adhere to the big request because they want to appear consistent (since I have accepted the first, I will accept the next) Low-balling technique

‘bait and switch’, consumers whom have already decided on a purchase and committed to it may still go through with the purchase even if conditions are changed (or you hide certain conditions from the consumers, but if they have already agreed to your request they are more likely to accept the ‘new conditions’ you mention) you continue feeling obliged to accept the terms because you want to appear consistent. You would never have agreed to the ‘new conditions’, but because you have already committed to it, you agree to the ‘new conditions’. Commitment makes consumers think of several reasons favouring choice (‘mere thought’ effect)

3. Reciprocacy
Consumers feel obliged to return favours, despite how small they are Reasonable requests should be met with favourable responses
Inexpensive free gifts can cause obligation to reciprocate
Door-in-the-face
large requests followed by small requests can seem reasonable (opposite of the foot-in-the-door technique) you are being considerate by receeding your request, hence they feel obliged to give in as well example: volunteer for 2 years or bring kids to the zoo?

conditions:
1) ask directly if they can bring kids to the zoo
2) ask for 2 yr volunteering then the zoo (higher %)
3) control: telling the subjects both and asking if they are willing to help That’s-not-all
just prior to buy-no buy decision, deal is sweetened, providing an “unarguable” reason to buy they give you more free gifts when you are deciding whether you buy or not, you feel obliged to buy since they are doing yo ua favour by giving you more (you should reciprocate by purchasing) Multiple-Deescalating-Requests

Even-a-penny

4. Scarcity
Things that appear to be scarce are more valuable

5. Social validation
others’ preferences predict my preferences
might explain why restaurants do not just increase price to earn additional surplus from patrons, as long queues or wait times are evidence for quality There is social value to having queues by deliberately keeping prices low enough (instead of achieving optimal price so that Qdd = Qss)

6. Liking
affect for the salesperson can translate to affect for the product similarity
impression management
ingratiation
making someone like you by flattering him/her
positive indirect associations
messengers of good/bad news

7. Authority
persons in authority or who appear to have the power to give rewards or punishment can be very persuasive cues such as uniforms, titles can create the illusion of authority managerial implication: sales people wear white coats

Milgram’s experiment

CULTURAL INFLUENCES
Influences of demographic variables
Age, income, education distribution...
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