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Psychology

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Jules Voss

on 9 May 2013

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Transcript of Psychology

Marketing & Consumer Psychology Module Leader: Dr. Diana Gregory-Smith Group 1:
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Z0936082 Z0940938 What is Behavioural Psychology? 1. Introduction to Debenhams 2.Classical Conditioning 3. Operant Conditioning 4. Behavioural Modification 5. Data Analysis, Recommendations & Conclusion Table of Content Thank you for your attention guys! Hope you Enjoyed it! 2. Classical Conditioning Methodology & Subject: A) Survey (Qualtrics) B) Fieldwork (Observations) C) Literature Review Behaviour Modification Theory: Neutral Stimulus + Unconditioned Stimulus =Conditioned Response A) Debenhams Advertisements Consistent use of the ''Life Made Fabulous'' tag line B) Red Tags www.debenhams.co.uk 1) Use of red discount tags on the website/store
Customers are conditioned to associate the colour red with Discount B. F. Skinner (1937) Application to Debenhams Application to Debenhams A) Debenhams Credit Card: Shop & Earn Points! 1. Points System = Positive Reinforcement

2. Convert to 'reward vouchers'

3. 10% Off + 500 Bonus Points*

4. Auxiliary Benefits (Spec. Events & 10% off Cafés/Restaurant) *On the day of Purchase B) Reward Vouchers 1) Based on the Points customers earn





2) Vouchers are sent during specific periods (Fixed Interval/Jan., April, July & October) C) Use of Reward Vouchers 1. Reward Vouchers have to be used before the expiry date 2. Negative punishment if not used 3. Operant Conditioning “BPM can facilitate the development of a comprehensive set of strategies and tactics which encompass those environmental and situational factors which directly influence behaviour.” (Nord W.R., Peter, J.P., 1980) Application to Debenhams A) Fading 5)Data Analysis,Conclusion & Recomendations 1. 2. 3. 1. 2. 3. 4. 5. 2. 3. Ivan Pavlov ''Behavioural psychology is a branch of psychology that focuses on observable behaviors. Conditioning, reinforcement and punishment are key concepts used .''* Theory 1. Introduction to Debenhams Founded in 1778 in London

Apparel for women, men and children; health and beauty; accessories and home

169 stores in UK and Ireland & 65 franchises around the world Key Facts FY 2011 recorded revenues - £2,209.8* million
UK market - 83.8%*of all revenues
Competitors – Marks & Spencer, NEXT, House of Fraser, Harrods
UK competitive position – 2nd (2011) after M&S** *Complete Debenhams Company Report, publication date: 8 Jun 2012
www.marketline.com
**Euromonitor International from company reports, company research, trade press, trade sources, trade interviews * Def. Retrieved from: http://psychology.about.com/od/behavioralpsychology/Behavioral_Psychology.htm Behavioural Psychology - Overview 2. Give clients more independence 1. Use of technology in order to shop K. L. Extended opening hours + Limited Purchasing Periods Sources: Stimulate/Push customers to buy during certain times/seasons/promotion periods 2. 3. 1. 2. D) Free Coffee Promotion Partnership with 'Foursquare'

People can 'check-in' and get a free coffee when coming to Debenhams * Information retrieved online from: www.debenhams.co.uk/store-events 1) Debenhams is associated with quality... 2) The majority of consumers associate the colour Red with sales Limitations: Interview Sample: Women/Men 71/29 %
Sample Size n = 56
Age Distribution of Sample: 19-25 & 26-35 years old people Reward cards are an effective method of gaining customer loyalty ''Operant conditioning is a method of learning that occurs through rewards and punishments for specific behavior [...], thereby associating spec. behaviors with spec. consequences [...].''* *Def. retrieved from: http://psychology.about.com/od/behavioralpsychology/a/introopcond.htm MSc. Strategic Marketing 1. 4. Behaviour Modification ''Behaviour modification techniques stem from the basic and applied research in the science of learning in general, and the principles of operant and Pavlovian conditioning in particular (Pear, 2001)''
Fading
Shaping
Chaining
BPM 1. B) BPM BPM Classical Conditioning Operant Conditioning ''The free reward functions as a positive reinforcement of consumers' purchase behaviour and conditions them to continue doing business with the firm.'' (Sheth & Parvatiyar, 1995) Customers are aware of floor markings, but they rather tend to be indifferent about them or even ignore them. Behaviour Modification Perspective Questions? Web-sources: Journals: Sheth, J.N., Parvatiyar, A. (1995). Relationship Marketing in Consumer Markets: Antecedents and Consequences. Journal of the Academy of Marketing Science, 23 (Fall), 255-71.

Nord, W. R. und Peter, J. P. (1980): A Behavior Modification Perspective on Marketing, Journal of Marketing, 44(2), S. 36-47.

Joseph J. Pear, 2001. The Science of Learning. Psychology Press, pp. 524.

Foxall, G.R., Newman A.J., 2003In-Store customer behaviour in the fashion sector: some emerging methodological and theoretical directions, 31(11), International Journal of Retail & Distribution Management

O. Cass. A., 2000, An assessment of consumer product, purchase decision, advertising and consumption involvement in fashion clothing, 21, Journal of Economic Psychology

Gregory-Smith, D (2012). Behaivoural Psychology & Environmental Psychology. Marketing & Consumer Psychology. [online via internal gateway]. Durham University Complete Debenhams Company Report, publication date: 8 Jun 2012www.marketline.com

Euromonitor International from company reports, company research, trade press, trade sources, trade interviews

Psychology About Theory Guide, Accessed online at: [http://psychology.about.com/]

Official Debenhams Website, Accessed online at: [http://www.debenhams.com/store-events Behaviour Modification 1) Debenhams
2) Clothes/Behaviour Store Layout
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