AMB200 Consumer Behaviour

Tutorial Workbook

Weeks 2 to 7

Semester 1, 2015

Tutorial 1 – Philosophical assumptions

Activity 1 - What are your philosophical assumptions about consumer behaviour?

Learning Objectives

Upon successful completion of this tutorial, students should be able to:

-compare and contrast the philosophical assumptions about consumer behaviour

-use examples and theories to explain their own consumer behaviour

Part A - Knowledge

  1. Fill in the table below by circling the view that best reflects your opinion

ACTING ON FREE WILLHIGHLY INFLUENCED

  1. Which view was dominant?

i)How many As did you have? _____

ii)How many Bs did you have? _____

In groups of three (see if you can include one person with an opposite dominant view), introduce yourself and discuss why you have different results.

Are you surprised by your findings?

Part B – Application

  1. Using the Engler 2003 reading and consumer behaviour theory in your textbook, explain how your dominant view influences your perception of the relationship between marketing and consumers.

How do you think your dominant view influences:

i)Your beliefs about the power of advertising

ii)Your feelings that marketing makes people buy things they don’t need

Tutorial 2 – Decision-making

Activity 2 - What types of decisions do you make?

Learning Objectives

Upon successful completion of this tutorial, students should be able to:

-categorise examples of their own consumer behaviour

-compare and contrast limited and extended problem solving

-explain their own consumer behaviour using the decision making process framework

Part A - Knowledge

  1. Choose a consumer behaviour that you have done in the last month from the following list:

AMB200 Consumer Behaviour - Tutorial Workbook Wk 2-7 - Sem 1 2015_Page 1

  • Buying a PC/laptop/high-technology item
  • Booking/arranging/going on an overseas holiday
  • Selecting a university
  • Going to the movies
  • Choosing a restaurant for a special occasion
  • Evaluating and selecting a mobile phone plan
  • Choosing to do volunteer work
  • Buying a fashion item
  • Going to a concert
  • Changing a habit (stopping smoking, reducing alcohol consumption, taking more exercise, eating more healthy)

AMB200 Consumer Behaviour - Tutorial Workbook Wk 2-7 - Sem 1 2015_Page 1

______

  1. Think about how you made the decision to do that behaviour. Now circle the way you did information search, evaluation and purchase.

Limited problem solving / Extended problem solving
Information search / Low risk and involvement
Little search
Information processed passively
In-store decision likely / High risk and involvement
Extensive search
Information processed actively
Multiple sources consulted prior to store visits
Alternative evaluation / Weakly held beliefs
Only most prominent criteria used
Alternatives perceived as basically similar
Non-compensatory strategy used / Strongly held beliefs
Many criteria used
Significant differences perceived between alternatives
Compensatory strategy used
Purchase / Limited shopping time; may prefer self-service
Choice often influenced by store displays / Many outlets shopped if needed
Communication with store personnel often desirable
  1. Now based on the table above, classify the behaviour into one of these two categories:

[ ] Limited problem solving

[ ] Extended problem solving

  1. For this decision, what was your decision style?

[ ] Rational

[ ] Automated

In groups of the same decision style (rational or automated) discuss:

What feature of the behaviour you have in common that made the decision rational or automated?

In what circumstances could your decision style have been opposite to the one you identified?

What would make you change your decision style?

Part B – Application

  1. Using consumer behaviour theory from your textbook, explain why:

i)you used limited or extended problem solving

ii) your decision was rational or automated

Tutorial 3 – Dissatisfaction and complaint behaviour

Activity 3–How do you respond when dissatisfied?

Learning Objectives

Upon successful completion of this tutorial, students should be able to:

-explain their own complaining style and show how it might affect complaint outcomes

-demonstrate the importance of managing expectations to customer satisfaction

-summarise the possible outcomes of dissatisfaction

Part A – Knowledge

  1. Briefly describe a situation where a company has made you feel dissatisfied.

(Examples may be: mistake on a bill/payment/charge, late delivery, incorrect item, product/service was faulty, rude service staff.)

  1. Your attitudes towards complaining.

Circle the response that best describes your attitude, opinion or belief.

COMPLAINT ATTITUDES
Consumer Alienation
Most companies care nothing at all about the customer. / Agree / Disagree
Personal Norms
I often complain when I’m dissatisfied with business or products because I feel it is my duty to do so. / Agree / Disagree
Social Benefits
By making complaints about unsatisfactory products, in the long run the quality of products will improve. / Agree / Disagree
Expectancy – Voice
Assuming you complained about the situation in point 1 above, how likely is it that the organisation would solve your problem and give better service to you in the future? / Likely / Unlikely
Expectancy – Private
Assuming you reported the situation in point 1 to your friends (who use the same organisation), how likely is it that your friends would stop using that organisation altogether? / Likely / Unlikely
Expectancy – Third Party
Assuming you reported the situation in point 1 to a consumer agency such as the Australian Competition and Consumer Commission (ACCC), how likely is it that the ACCC would make the repair shop take care of your problem? / Likely / Unlikely
Value – Voice
How likely is it that you would complain to the organisation in point 1 if you were pretty sure the organisation would solve your problem and give better service in the future? / Likely / Unlikely
Value – Private
How likely is it that you would mention the situation to your friends if you were pretty sure that they would stop using that organisation altogether? / Likely / Unlikely
Value – Third Party
How likely is it that you would report the incident in point 1 to a consumer agency such as the ACCC, if you were pretty sure the ACCC would make the organisation take care of your problem? / Likely / Unlikely
  1. Do you think your complaint behaviour is more influenced by your attitudes, beliefs and opinions in the table above or by the specific situation? Why?
  1. Think about how you reacted to that situation. Now circle the description in column A or Bthat best describes your reaction.

YOUR RESPONSE / A / B
Importance of the situation / High / Low
Did you feel embarrassed? / Yes / No
Have you ever complained previously to an organisation? / Yes / No
Was it easy to complain to the provider this time? / Yes / No
Was there a lot at stake (financial? Social? Health?) / Yes / No
What type of person are you? / I speak up for what I believe is right / I am not the type to complain
Do you think the company should have handled things better / Yes / No
Were you with family /friends who didn’t want you to complain / No / Yes
Did you complain? / Yes / No

If you circled mostly As then it is likely that you complained. If you circled mostly Bs then it is likely you did not complain.

Look at the features of each column. What is similar in each column? Why do you think these features go together?

  1. Now compare your responses with a person who reacted differently to you. What features did they select in their table? Why are they different to you?

Part B - Application

  1. Read the article Singh (1990) “A Typology of Consumer Dissatisfaction Response Styles”, Journal of Retailing (66) 1 p. 57-99 [available on blackboard].

i)compare your responses in the COMPLAINT ATTITUDES table in point 2 above, to the cluster groupings on page 88 of the Singh article. In which cluster do you fall?

ii)did your response to the situation match with Singh’s description of your cluster? Explain.

7. Using a consumer behaviour theory (from your text book or elsewhere), describe the role of expectations, satisfaction and complaintsusing your consumer behaviour identified from your Activity 2 Worksheet.

Tutorial 4 - Motivation

Activity 4–What motivates you?

Learning Objectives

Upon successful completion of this tutorial, students should be able to:

-explain their own consumer behavior by using two motivation theories

-link motivation theories with values theories to solve a real-world problem

Part A - Knowledge

What was the consumer behaviour you selected in Activity 2? ______

  1. Did any of these needs influence your behaviour; complete the table below

Yes or No / McLelland’s Motives / If yes, why?
Need for achievement: to attain personal accomplishment
Conspicuous consumption of status products – “I’ve made it”
Need for affiliation: to be in the company of others
Products that are consumed with others i.e. team sports, shopping centres
Need for power: to control one’s environment
Products that give a feeling of mastery i.e. Hotted-up cars
  1. Which of these five levels of Maslow’s motivation theory do you think explains your behaviour? You can select more than one. Write in where you think it fits in the triangle below.

Part B - Application

  1. Using the handouton value types(at the end of this activity) to complete columns 1 and 2 and then one of the theories of motivation you considered today to complete column 3, complete the table below.
  1. List three values that motivated you to buy your selected good/service.
  2. Find someone motivated by different values in your class, using consumer behaviour theory from your textbook, explain why there are differences (is it the type of product/service? Is it different personal values?)

You / Other Person / Why are these different?
Behaviour:
Value 1:
Value 2:
Value 3:

Rokeach’s Value Types (see pg.162 of text)

Instrumental Values / Terminal Values
Ambitious / A comfortable life
Broad-minded / An exciting life
Capable / A sense of accomplishment
Cheerful / A world of peace
Clean / A world of beauty
Courageous / Equality
Forgiving / Family security
Helpful / Freedom
Honest / Happiness
Imaginative / Inner harmony
Independent / Mature love
Intellectual / National security
Logical / Pleasure
Loving / Salvation
Obedient / Self-respect
Polite / Social recognition
Responsible / True friendship
Self-controlled / Wisdom

Sources: Adapted from Richard W. Pollay, ‘Measuring the cultural values manifest in advertising’, Current Issues and Research in Advertising 6(1), 1983, pp. 71–92; John Rossiter, ‘Indentifying and measuring “Australian values”’, Australasian Marketing Journal, 15(1), 2007, p. 12.

Tutorial 5 – Perception and learning

Activity 5–The role of perception, learning and memory in consumer behaviour.

Learning Objectives

Upon successful completion of this tutorial, students should be able to:

-identify the elements of the perceptual process and classify their own behaviour

-recognise which perceptual distortions apply to them

-compare and contrast interpretations of the consumer behaviour of peers

-describe the different ways consumers learn

What was the consumer behaviour you selected in Activity 2? ______

Part A - Knowledge

  1. Using the perceptual process, describe your reactions to your selected consumer behaviour situation.

Exposure / Attention / Interpretation
Which senses were stimulated? How? / What aspects of the product/service, environment were you aware of at the time? Why? / How did you interpret the experience (good? bad?) Why?
  1. Did any of these distortions in perceptual interpretation occur to you?

Yes or No / Perceptual distortions / How did these occur?
  • Physical Appearances - making judgments on people’s or objects’ appearance or other attributes

  • Stereotypes - mental shorthand, mental “pictures of meaning”, of product or brand – or people, i.e. who might use the product?

  • Irrelevant Cues - distractions from main stimulus

  • First Impressions - usually lasting – based on random attention

  • Jumping to Conclusions - tuning out because message is not relevant to self – (could be perceptual defence or lack of experience)

  • Halo Effect - making a judgment based on one or two (positive/negative) criterion (i.e. brand name) and not considering other criteria – (selective perceptions)

Part B - Application

  1. Now describe the situation to people in your class – ask them how they would interpret the same situation. Select one interpretation that is different to yours and explain why it is different (use consumer behaviour theory from your book).

Alternative Interpretation / Why is this different to yours?
  1. How did you learn about your selected consumer behaviour; complete the table below (select as many as apply).

Yes or No / Type of learning / Explain
Classical Conditioning
(Did you make positive or negative associations about any aspect of the consumption?)
Operant Conditioning
(Were there rewards or punishments?)
Rote Learning
(Did you learn any aspect by rote?)
Observational Learning
(Did you learn about the consumption experience by watching others?)
Reasoning
(Did you do research, investigate the possibilities to learn about the situation?)
  1. Imagine that you need to teach someone about one aspect of your selected consumer behaviour.
  2. What type of learning do you think would be the most relevant? Why?
  1. List out the steps you think could be taken to teach someone.
  1. Now try and teach the behaviour someone in your class (use role play).

Tutorial 6 - Attitudes

Activity 6–How attitudes are created and changed

Learning Objectives

Upon successful completion of this tutorial, students should be able to:

-identify the components of attitude and classify their own behaviour

-employ the Theory of Planned Behaviour to demonstrate how attitudes can be changed

Part A - Knowledge

Thinking about the consumer behaviour you selected in Activity 2, what was an item that you bought or a service you were involved with?

______

  1. Using the two-component approach to attitudes, identify the way you feeland think about the item you bought or service you were involved with.

Component 1: Cognition (Thinking) / Component 2: Affect (Feeling) / Overall Attitude / Dominant Component
What beliefs do you have about the item/service?
e.g. Coca-Cola is healthy / What feelings do you have about the item/service?
e.g. Coca-Cola is fun / What is your overall attitude towards the item/service?
e.g. positive or negative / Which component do you think is the most important in explain your response in the attitude column? Why?
  1. Which hierarchies of effect model best explains the way your attitude was developed?

[ ] Standard learning hierarchy

[ ] Low-involvement hierarchy

[ ] Experiential hierarchy

Draw out your selected hierarchy of effects to show the thoughts (cognitions), feelings (affect) and actions (behaviour) for your chosen behaviour.

Part B – Application

  1. Using the theory of planned behaviour to explain your consumer behaviour.
  • Write down any consumer behaviour (or use the behaviour from Activity 2).
  • What intentions need to be created to lead to this behaviour?
  • What do your family and friends think about this consumption behaviour?
  • Were there any barriers to your ability to control your behaviour?
  • What was your attitude towards the behaviour?
  1. Given the information above, how does the Theory of Planned Behaviour (TPB) effectively explain your behaviour? If the TPB does not effectively explain your consumer behaviour discuss why.

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