Written summary of lesson 5, Consumer Behaviour (Prof De Langhe). All lesson information, slides, graphs...
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Written summary of session 5, Consumer Behaviour (Prof De Langhe). All information ...
Session 5 (Nov 27): Customer-based brand equity – part 1
Questions/wrap-up about the previous sessions:
Clark Hall: psychologist
Rats motivation changes as a function of how close they are to their goal
The closer they are to the goal, the more motivated they are!
Speed of running goes up
Humans are not so different:
Consumers speed up the closer they get to their free reward (klantenkaart met 11e koffie
gratis) = stamp card
People will complete the left card
faster.
The stamps are creating illusionary
goal progress
How can prospect theory help you understand when people are motivated?
GOALS AS REFERENCE POINTS:
Why? Sally accomplishes her goal, and even exceeds her goal = gain, feels good
Trish falls short of her goal = loss, feels bad
→ has an effect on how satisfied they are with their performances
Goals, like reference points, divide outcomes into regions of goed and bad, success and
failure
But: who is experiencing more emotion?
Trish, why? → Central property of prospect theory = loss aversion!
Trish sits in the negative/loss domain and Sally in the positive/gain domain:
, They are equally far removed from the reference point, but for Trish this will feel more
emotionally intense
Will it be Charles, who is above his goal?
Or David, who is still below his goal?
→ most people say David
Why? If you fall short of your goal, you should be more motivated to increase your
performance with one unit than if u exceed your goal!
Again: in the negative domain, things are more emotionally intense
Putting all this together:
Value functions for two
individuals who have
different goals:
Goal 1 = 30
Goal 2 = 40
1. Gains vs losses:
Actual performance of 35:
Slope of the function of person 1 (goal of 30): less deep
→ indicating that the second person might be more motivated
2. Diminishing sensitivity goal gradient:
For 2nd individual with goal of 40, imagine there are two performances than can
happen: 28 or 35
35 is closer to 40 than 28 so you should be more motivated when you are with 35
= people are more motivated when they are closer to their goal
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