4201 final
performance based shortcut
Buy the best tasting/cleaning cookie (detergent) SUBSET: Price-based: (cheapest, the one on sale etc.) Basically - lexicographic Buy something that is best for performance Rate the performance as most important attribute and buy that one
how do we observe
Camera Nielsen's people-meter PC-meter Eye - tracking recorders Pupilometer Galvanic Skin Response Electroencephalograph FMRI Voice-pitch analysis Scanner based
problems with focus groups
Chain reaction=one says something, then someone else agrees Devils advocate=no to everything False termination=seems like there is a conclusion
why a/u/d of an offering
Consumption can occur for a number of reasons • Offering meets someone's needs, values, or goals o Get tattoo to meet a form of self expression, fit group, exprss feelings about someone or something Reasons for using an offering are filled with conflict, which hleads to some difficult consumption decisions
what can we observe
Human behavior or physical action Verbal behavior Spatial relations and locations Physical objects Temporal patterns Verbal and pictorial records Expressive behavior
trait theory of personality
-Internal characteristics of individuals -Individuals differ on these characteristics in a consistent way -Can be measured -Formed at an early age, relatively unchanging
advertising to children
-children don't understand intent to sell until around age 12, types of product advertised, host selling/spoke characters/privacy on itnernet
who controls exposure
-consumers select what media they consume/ what stores they go to -marketers control when/where consumers encounter their brand
special possessions
-pets -memory laden objects -achievement symbols -collections
sandwich generation
Adults caring for their own children as well as for aging/elderly parents and/or grandparents, helped costco
work and play
Americans work harder and longer than ever before Protestant Work Ethic - the value placed on work itself and on the delay of gratification to the exclusion of leisure and pleasure As Americans work harder: Some value leisure time more Others label leisure as wasteful - implications: pay for services=ahppier people because value time (housekeeper), delivery everywhere, offer productive leisure (productive on vacation)
expectancy value model
Analytical processes that explain how consumers form and change attitudes, based on the beliefs or knowledge they have about an object or action and their evaluation of these particular beliefs
mateiralism
Attachment to material possessions, including an enmeshed relationship between the ownership of objects and one's sense of self
fear appeals
Attempting to change people's behaviors by use of a message that induces fear.; elicit fear or anxiety; ineffective because consumers perceptual defense helped them block out and ignore the message; can work under certain circumstances=guilt/regret if experienced when consumer does or does not do something (applying sunscreen)
individualism
US culture, mass customization, want to present who we are (who we are is reflected by what we buy), goes to food=subway and five guys
10 best logos
US: nike, apple, mcdonalds, coca cola, google, Microsoft, pepsi, amazon, target, starbucks UK: apple, mcdonalds, nike, coca cola, google, virgin, adidas, Microsoft, amazon, bmw
consumer behavior employers
Universities, market research firms, manufacturers, advertising agencies, retailers, governments, museums, etc.
36 value proposition examples
Value proposition offers a reader clear picture of what your brand stands for and has to offer It should concisely tell your reader: How your product or service can solve problems, What they can expect if they purchase your product or service, The advantages of doing business with your company over your competitors
what do these studies tell us about consumer behavior
We comply more with perceived authority figures (Milgram study) Authority cues = rank, title, clothing etc. "expert" product endorsers We determine what its correct in part by finding what others think is correct (Asch study); conform to what others do Laugh tracks "fastest growing" "best selling"
high effort decision
Willing to invest a lot of time and to exert mental and emotional energy in making it; several criteria to judge on, motivated to be exposed to lots of information, thinking about it deeply, analyze it critically, and form attitudes about it
netnography
a branch of ethnography that studies the behavior of online cultures and communities
approach approach conflcit
a choice must be made between two attractive goals
emotion
a conscious mental reaction subjectively experienced as strong feeling directed toward specific object and typically accompanied by physiological change (high intensity)
sensation seeker
a consumer who actively looks for variety
deal prone consumers
a consumer who is more likely to be influenced by price
purchase panels
a data-gathering technique in which respondents record their purchases in a diary
exponential diffusion curve
a diffusion curve characterized by rapid initial growth
S shaped diffusion curve
a diffusion curve characterized by slow initial growth followed by a rapid increase in diffusion, dynamic because more adoption early on
post decision dissonance
a feeling of anxiety over whether the correct decision was made
post decision regret
a feeling that one should have purchased another option
associative reference group
a group to which we currently belong
cognitive load
a lot to think about=affective response
underdog
a lower share brand
top dog
a market leader or brand that has a large market share
compensatory model
a mental cost-benefit analysis model in which negative features can be compensated for by positive ones
multiattribute attitude model
a model that combines a number of pieces of information about belief and evaluations of attributes of an object
disjunctive model
a noncompensatory model that sets acceptable cutoffs to find options that are "good"
innovation
a product, service, attribute, or idea that consumers within a market segment perceive as new and that has an effect on existing consumption patterns.
point of purchase
a promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying
prepurchase search
a search for information that aids a specific acquisition decision; occurs in response for the activation of problem recognition
noncompensatory model
a simple decision model in which negative information leads to rejection of the option
affect referral
a simple type of affective tactic whereby we simply remember our feelings for the product or service
brand community
a specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use, associative reference group formed around brand
agreeableness
a tendency to be compassionate and cooperative rather than suspicious and antagonistic toward others
conscientiousness
a tendency to show self-discipline, act dutifully, and aim for achievement
terror management theory
a theory of death-related anxiety; explores people's emotional and behavioral responses to reminders of their impending death; worldview of values/beliefs to cope with terror knowing that we will die someday despite innate impulse toward self preservation, elaborate so much as threat of fatal consequences may be ineffective, not process messages suggested change in behavior
attribute theory
a theory of how individuals find explanations for events
equity theory
a theory that focuses on the fairness of exchange between individuals, which helps in understanding consumers satisfaction and dissatisfaction
Multiattribute expectancy-value model
a type of brand-based compensatory model
effect of culture
a) Low-context cultures (North America, Northern Europe) separate a message from the context in which it appears (emphasis on what is said than visuals) b) High-context cultures (Asian countries) interpret messages differently based on the characteristics of the message sender (e.g., age, social class)
Adoption/Resistance to Innovations
adoption=purchase of an innvoation by an consumer or household resistance=desire not to buy an innovation, sometimes even in face of pressue to do so
boomerang kids
adult children returning home, spend less on household items and more on entertainment
projective techniques
advantage=verifying hypthesis, minor cognitive demands placed on respondents; disadvatange= complexity of data, difficult for some respondents to fully immerse themselves, reliability of instrumetns (situational factors)
direct comparative advertising
advertisers explicitly name and attack a competitor or set of competitors on the basis of an attribute or benefit; when better than competitor; generate attention and brand awareness and increase message processing, not have high credibility
dark side of consumer behavior
advertising affects self image, advertising misrepresent segments of consumers, and marketing invades consumers privacy
marketing sources of influence
advertising, sales promotion are mass media delivered, delivered personally salespeple/servce representatives/customer service agents
characteristics of the decisions
affect how consumers make their decisons, availability of information/information format/trivial attributes/group context
evaluative conditioning
affective response by repeatedly pairing neutral CS (brand) and an emotiaonlly charged UCS (celebrity); encourage psychological one (positive feeling toward preference for CS)
low effort feeling based decisions
affective tactics, brand familiarity, variety seeking, and impulse purchasing
cultural environment
affects what motivates consumers, how they process information, and the kinds of decisions they make
lifestyle dimensions: demographics
age, education, income, occupation, family size, dewlling, city size, life cycle stages
what influences categories
age, knowledge, goals, what we are told, culture
implications of family and children
americans highly receptive to extravagant toys, give them great childhood feeling, highly receptive to children safety products and books
time situational elements
amount of time available, time of day, how much time a consumer has available to do a task influence the buying strategy used to select and purchase product (easy to justify, habitual, more affetive, based on gut); time of day=some products only appropraite for certain times of day
mystery ad
an ad in which the brand is not identified until the end of the message
cobranding
an arrangement by which the two brands form a partnership to benefit from the power of both
impulse purchase
an unexpected purchase based on a strong feeling
analysis of reasons
analyze their reasons for brand preference increase the link between attitude and behavior in situations in which behavior is measured soon after attitudes are measured
anchoring and adjustment
anchor on the initial construct and not adjust sufficiently, look for cue to think about what price I want to pay; only works if not familiar with what price should be; make reference point (starbucks set new reference point)
strongest emotion
angry, awe=second
if consumers dissatisfied
apology and control situation, discount, take no action, discontinue purchasing the product or service, complain to company or to third part and return item, engage in negative word of mouth
what does marketing ethics apply to
apply to relationships with customers and relationships with employees/managers/suppliers/stake holders
openness to experience
appreciation for art, emotion, adventure, and unusual ideas; imaginative and curious
fewer CA and SA
argument in message are strong, involved in proram showing the messages
unsatisfied needs
arises when customers' desired level of satisfaction differs from their present level of satisfaction, creates goals to relieve tension
sureys
asking questions to draw quantitative conclusions about target population; understand a specific customer segment and help marketers understand product purchasing patterns
causal research
assess cause-effect
thin slice judgements
assessments consumers make after brief observations despite receiving minimal information input
transformational advertising
associate the experience of using product with unique set of psycholocial characteristics; increase emotional involvement by making use of product or service more pleasing and richer experience as opposed to factual informaiton
prospect theory replaces
expected utility (objective) with subjective utility (how we see things): incorporates human element of evaluation People don't follow a traditionally "rational" theory of choice Diminishing returns Losses loom larger than gains (steeper for losses than gains) Reference point
measuring belief strengths
bi; does it have a business school or how likely is it that OSU has a business school; how likely is it that OSU has this feature/characteristic
cant train ourselves to detect
biases, eyes keep lying to us, biases have root in unconcious system 1 thinking=not accessthem to change
personality measures
big 5, material values scale, need for uniqueness, mmaximizer vs satisficer, spendthrifts vs tightwads
draws a lot of attention
big social issue, current topic,
consumers make inferences on
brand names and symbols, product features and packaging, price, retail atmospherics/displays/distributions
awareness set
brands I know
brand equity
brands very name has value beause of the positive ideas and expectations associated with it in consumers mind
bait and switch
bring ou in and try to sell you something else, misrepresenting the selling intent, incorrect statements
Global values
broadest level - most enduring, strongly held, and abstract values that hold in many situations; maturity, security, prosocial behavior, restrictive conformity, enjoyemt, achievement, and self direction
the first advertisements
brothel advertisements at Ephesus in turkey's marble road; 1st century CE=hidden brothel
generally people undersearch
but can oversearch but will lead to less satisfaction
framing should not make a difference in choice
but it does, a negative frame vs positive frame
% of sexual ads have not changes
but the type sexual forms have changed over the years
memory laden objects
buy objects to mark memories, overestimate how much they will retrospect, material objects are better memory markers when marking special occasions (class ring to relive experience), momemtos can gain value now (notre dame)
you are what you consume
buy to be able to tell somehting about themselves, social identity as individual consumption behaviors; inference of personaity based on consumption patterns
different people may play different roles
buyers, end users, influencer
brand loyalty
buying the same brand repeatedly because of a strong preference for it
multibrand loyalty
buying two or more brands repeatedly because of a strong preference for them
ways of dipsoing of an offering
buying, trading, renting, leasing, bartering, gifting, finding, stealing, sharing; • Sometimes nothing but the packaging remains of an offering (food) after it has been consumed • Consumers who want to dispose of tangible products o Find a new use for it=continue use for different prupose o Get rid of it temporarily=renting or lending o Get rid of it permanently=throwing away, recycling, trading, giving awat, selling Can refuse to get rid of it if regarded as special
weaknesses in external secondary data
expensive (bigger companies use it); who chooses to do it=skew data they collect
price quality heuristic
expensive=better; people think amazon cheapest but they sell for more than other places
of an offering
experiences, people, products, services, activities, ideas
field experiments
experiments in real world, market test
casual research quantitative
experiments, test markets (quasi-experiment)
why we seek opinion seekers
expertise (unbiased knowledge), highly interconnected in communities (social standing), hands on product experience (absorb risk)
compensatory rule
explicit attributes weihts; weight attribute=-1; power=3 multiple and multiply/sum to get values, pick one with highest points based on weight
stages of memory
exposure to attention to perception
priming
exposure to words, pictures, or things outside conscious awareness=affects emtoions and moods
selective exposure
exposure trying to maximize by placement, marketers control when/where consumers encounter their brand and consumers select what media they consume/what stores they go to
qualitative interviews
face to face with one respondent with objective of exploring subject matter in detail, structured with preselected questions, directiveness and structuredness; good at finding what people hate; gives idea about functional ideas (need quant)
normative factors
factors from outside that change behavior
product in younger market
facts/expert opinion and strong arguments more effective
lifestyle dimensions: interests
family, home, job, community, recreation, fashion, media, and achievements
hearing
fast music=energize, slow=soothing, fast=rapid traffic flow, slow=increase sales, likeable and familiar music=good moods
individualistic countries
favor empathetic message
attitudes can be described in terms of
favorability, attitude accessibility, attitude confidence, persistence, and resistance
what happens if they do not recognize body feedback
feedback cue will have no effect on attitude or behavior
emotions
feels good or right=favorable attitude; can get these from others as well
marketing strategy and involvement
find dedicated segment, concrete on high involvement segments, attempt to increase or build involvement (social influencer, tie to feelings), link to involving situations, may want to decrease involvement
satisfice
finding a brand that satisfies a need even though the brand may not be the best brand
why innovate
first mover advantage, meet new needs, differentiate themselves, be creating new need, new product, figure out how to make something cheaper
mood congruence
fits mood and looking at something that matches mood; memory effect=better recall if valence of materials fits with current mood
me vs we
focus concretely on people close to us (family)
influence consumers attitudes
focusing attention on emotional appeal, experience positive emotions in situation
physiological level
food/water/shelter/oxygen
ad hoc
for a specific purpose or situation; goal driven categories
cutoff level
for each attribute, the point at which a brand is rejected with a noncompensatory model
referencegroups differ on
formality, degree of contact, homophily, group attractiveness, density (all know each other), degree of identification, tie strength
hypothesis generation
forming expectations about the product or service
custody scenario
frame of questions matter because difference between risk seeking and risk averse (deny vs award)
safety level
freedom from harm/financial security
many message arguments
frequency heuristic
primary groups
friends, face to face interactions (more affected by these)
social needs level
friendship
consequences
functional and physiological
more ways to classify innovations: by benefits offered
functional innovation, aesthetic or hedonic innovations, symbolic innovations
deep metaphor
fundamental viewing lenses we use to orient ourselves to the world around us, below awareness in unconscious mind; shape and reshape everything we do, common denominators among consumers
observations and ethnographic research
gain insight into potentially effective product, promotion, price, and place
group decision making roles for housheold members
gatekeeper, influencers, deciders, buyer, user
emotional content
concrete emotional appeals are more effectve in short term behavioral intentions, abstract emotional appeals are more effective in stimulating long term intentions
attributes
concrete or abstract
attitude confidence definition
confidence tends to be stronger when attitude is based on greater amount of information or on more trustworthy information, more likely to predict our behaviors
what leads to dark side outcomes that can potentially harm customers or marketers
conflicts that arise from dilemmas in marketing can sometimes create this
noncomepensatory models
conjunctive, lexicographic, and elimination by aspect
beleivers
conservative, conventional, traditional
late majority
conservative, wary of progress, rely on tradition; skepticalm below average social status
when MAO low, working memory
consistent of simple reporduction of object
how does social class affect consumption
conspicious consumption, conspicious waste, compensatory consumption
Marketing invades consumers' privacy
consuers responses at supermarket and retailers, public domain
implicit memory definition
consumers are not consciously aware that they remember something, makes it easier to process things we have encountered before,
through repeated exposure
consumers become familiar and like it more (mere exposure effect)
social relational theory
consumers conduct their social interactions according to the rights and responsibilities of their relationship with group members, a balance of reciprocal actions with group members, their relative status and authority, and the value placed on different objects and activities
high elaboration situations
consumers confronted with persuasive message that conflicts with their own attitudes will generate counterarguments that strengthen initial attitudes
attitude behavior relationships over time
consumers exposed to advertising message but do not try product, their attitude confidence declines over time, message repetition, trial based brand attitudes are likely to decline over time even though advertising based attitudes do not
Reasoning by Analogy or Category
consumers form attitudes by considering how similar a product is to other products or to a particular product category
body feedback
consumers may not monitor their own physical reactions, body feedback can influence attitudes and behavior(nod=positive); need to know meanings of feedback in order to explain their behavior
MAO is high working memory
consumers use elaborated imagery processing to enage in daydream or elaborated discursive processing to think about something or work out solutions to current problems
importance of time
consumers used to spend time to save money, now they spend money to save time, time has become valuable currency in consumer lives; 70% of us consumers 16 years and older say they don't have enough time to do all the things they want
external processes
consumption decisions and how we process information are affected by out culture; diversity/household income and class/value personality and lifestyles affect decisions
goal derived categories
contains objects that are perceived as belonging together based on their ability to serve the same goals
descriptive research quantitative
content analysis, surveys, data mining
message content and repetition
content in which message is delivered can affect the strength of consumers beliefs and prominence of those beliefs for consumers; repetition=increase salience of their beliefs
unethical behavior can create
controversies in context of acquisition/consumption/ and disposition
sunk cost effect
costs that have already been incurred and cannot be recovered; irration=did get moeny's worth vs rational=am i satisfied; make small commitments and when try to pull out=total commitment they have already made
first mover advantages
create new category or often combine two known products, brands to be prototype, easier to recall leads to higher sales
opinion leaders are part of the category
gatekeepers
gen x vs millennials
gen x is skeptical and need more convincing, millennials ideal driven
types of opinion leaders
generalize opinion leader (polymorphic) rare; market maven; monomorphic
polymorphic
generalized experts=rare, hard to be expert in everything
exploratory research
generate ideas
when message content differs from what they already believe
generate more counterarguments and fewer support arguments
when message weak
generate more counterarguments and fewer support arguments
descriptive research
generate numbers and relationships
examples of disposition
give away, sell, lend
music
global, jingle and now popular music; stimulate a variety of positive effects; good CS for classical conditioning (tags=retrieval cues); put consumers in positive mood and attitudes, generate positive feelings like happiness, stimulate emotional memories
affective response
go with gut what is appealing to emotions
laddering
going deeper, why is that important to you?
consumer behavior involves
goods, services, activities, experiences, people, time (scarce resources), and ideas (tangible=soap and intangibles)
research designed for consumer protection
government and consumer advocacy groups
important properties of categories
graded structure (some represent categories better than others), prototype (best example of category)
age cohorts
grandparents of depression vs baby boomers of the 60s, gen x vs gen y
allowing incorrect inferences
green packaging=allowing us to make inferences we know incorrect,
knowledge structure: categories
group objects together that share certain characteristics; defined division within an orderly classification of objects with similar objects in same category
norms are
group specific and situation specific; taught to us through culture and observations
AIO
grouping customers according to activities, interest, opinion
secondary groups
groups with whom we do not have direct contact; role models
pet family members
growing segment; spending doubled in last decade, designer water for dogs/name brand pet products/lavish kennel clubs/pet accessories
attitudes are important
guide our thoughts (cognitive function), influence our feeling (affective function), and affect our behavior (conative function); these attitudes guides our decisions and behavior in acquiring, consuming, and disposition
recognition needs to
have high frequency work (coke)
forming and changing attitudes
create or influence consumers attitudes toward new offering and novel behaviors when they understand how attitudes are formed; plan strategies
low effort marketing implications
create positive evaluations of brands, increase situational involvement, raise awareness of need situations, and stimulate purchasing and consumption
argument quality
credible concerns whether it uses strong argument
what affects our value
culture and ethnicity, social class, and age cohort
content and structure
culture and level of expertise influence structure and knowledge between consumers; experiences play role in content and structure of consumers knowledge
complainers
customers perceptions of problem, compnay customer relaitonships, customer psychographics, personal characteristics
generic trademarks
have lost all legal protection as trademarks because they are so commonly used, used to be brand names not anymore, aspirin and escalator
decisions that emphasize future interests may
have positive or negative implications (neglect or downplay pleasurable experiences in present)
consumer research helps marketers to
develop product specific plans and broader strategies for market segmentation, targeting, and positioning and to make decisions about the components of the marketing mix
what is psychographics
developed 60s-70s, demographics tell us who buys but psychographics tell us why they buy, consumers can share the same demographics and behavior and still be very different
these sources of influence
differ in reach, two way communication capacity, credibility
construal level theory
different levels of abstractness in the associations that consumers has about concepts (people, products, brands, and activities) and how consumer is psychological distance from concepts influences behavior
media choices influence exposure
different media outlets frame information differently
positioning of product
differentiate themselves from others in category, 7up vs coke; close to it=people like generic (cola heb similar to coke), relevant to goal (caffeine free one vs regular pop)
interviews
direct contact with consumers, appropraite when topic is sensitive/embarassing/emotional
normative influence types
direct influence (manipulate us), vicarious observations (observe others to guide behavior), indirect influence (concerned about opinions of others)
cogntive (thoughts)
direct or imagined experience, reasoning by analogy or category, value driven attitudes, analytical attitude constructution
five cognitive models
direct or imagined experience, reasoning by analogy or category, values driven attitudes, social identity based attitude generation, analytical processes of attitude construction
social class fragmentation
disappearance of class distinctions (blurred lines, mass media, communication technology)
source derogations
discount or attack source of message
information processing working memory
discursive and visually
decrease counterarguments
disrupt then reframe technqiue, disrupt cognitive processing of communication clears the way for more effective persuasion when the message is reframed; react more favorably to communciations when they are in good mood
dual encoding
do something and hear something at same time
psychological risk
does it fit with what I think of myself?
mood different than classical conditioning
does not require repeated association between two stimuli, can consumers evaluations of any object not just the stimulus
reactance
doing the opposite of what the individual or group wants us to do
habit
doing the same thing time after time
satificers
dont search for perfect solution, stop search and choose when one that is good enough
DINKs
dual income no children, growing segment, disposable income, travel and entertainment
how long will i feel this way
duration
Why Milgram Study
have task feel compelled to complete the task, defer guild to experimenter (attribution theory); authority figure=not forcing you just saying what is expected (authority cue=important)
families with young children
health foods, toys, baby gear, clothes
negative bias
heightened sensitivity to negative information
how can companies use ZMET
help connect with marketing
why categorize
help us identify new things, learn/make inferences, too much information=provides structure
emotional appeal more effective in
helping hevy users of the product access brand name
extended problem solving
high consumer effort, all 5 stages with lots of effort on each step, purchase decision is perceived as risk/personally relevant, extensive information search, careful evaluation of attributes, visit different outlets, deliberate decisions, MAO high, internal and external search, 2-8 alternatives considered; noncompensatory and compensatory rules
fasgion and prestige good
high price symolizes status, less sensitive to price and pay more
elaboration high
high thought, central route, experts/involveent high/ ad speaks to you
greater discrepancy between actual and idea
higher motivation/ability/opportunity=more likely to get consumers to act
unwilling to dispose of possessions
hoarding, product retention tendencym green consumption values
over time
hours, days, weeks, months, years
gatekeepers
household member who collects and controls info improtant to decider
user
household member who consumes product
influencer
household members who try to express their opinions and influence the decisions
dual mediaton hypothesis
how attitudes toward the ad can influence attitudes toward the brand and intentions
taxonomic categories
how consumers classify a group of objects in memory in an orderly, often hierarchical way, based on their similarity to one another
favorability
how much we like or dislike an attitude object
base rare information
how often an event really occurs on average
meta cognitive experiences
how the information is processed beyond the content of the decision
differenes in adoption: chasm model
how to cross chasm from early market to mainstream market=bandwagon effect in which momentum build to point that product becomes the standard (applicable only to discontinuous innovations)
central issue of temporal dilemma
how will the decision affect my interests, our interests, or their interests immediately compared with the future
match up hypothesis
idea that the source must be appropriate for the product/service and match the offering
fastest growing brands
ideal driven; eliciting job, enabling connections, exploration, price, impacting society
does advertising influence self esteem
idealized body images, found college students exposed to this have more idealized body images felt less satisfaction with own appearance
primary motivation VALS
ideals are guided knowledge and prnciples, achievement look for products/services that demonstrate success to peers; self expressions=desire variety/risk
do people really conform
identif line=33% more likely to say c is longer even though answer is clearly b, group think, only 1 person defects=enoguh to reason to defect, unanimous answers where people can be swayed
why when more people affected less funding
identifiable victim effect=single victim more likely to raise more monry than if helping group of people (emotion)
multiattribute model
identify relevant attributes, determine beliefs about attitude objects on those attributes; get evaluation and beliefs for each by surveying target market
reference groups and marketing strategy
identity: membership strategies focus on ordinary people whose consumption provides informational social influence aspirational: adminstrational strategies concentrate on highly visible, widely admired figures (athletes or performers) dissociative=avoidance strategies focuses on undesirable people using competitors product (who you dont want to be)
less likely to believe a source credibe
if celebrity endorses produce, hold own existing attitude confidence, high degree to generate their own conclusions, trust is lessened
opportunity to recycle
if difficult or inconvenient, consumers avoid doing so; must break old waste disposal habits and develop new recycling behaviors
me vs them
if our focus is more abstract such as strangers or society at large, decision may be framed as this
feeling will only change attitude
if you make link between feeling and product
advertising misrepresent segements of cosnumers
ignoring key segments and stereotyping key segments
recall
imagery obsession, novel names, suggest offering=easy off
fear appeals are effective
immediate action that will reduce fear, level of fear generally moderate to be effective, higher levels of involvement/lower levels of fear can be generated because consumer has a higher factors to process information; must be credible
youth
implication plastic surgery, us consumers place a high value on youth and looking young, constant striving for youth
qualitative exploratory research
in depth interviews, projective techniques, focus groups
marketers want to change attitudes
in order to influence consumer decision making and change consumer behavior
values are engrained
in us as we grow up
how can you encoruage WOM communciation
incentives, hashtags, teaser campaigns
universal set
includes all possible choices for a product category
involving messages
increase extent to which consumers engage in self referencing of related to message in their own experience (nostalgia), highly descriptive on persoanality dimensions that they consider improtant or self descriptive
focusing on future interests of others may
increase our sense of satisfaction or be congruent with our self concept as someone who is altruistic or charitable
consumerism
independent organziations, and concered consumers that are designed to protect the rights of consumers
inert set
indifference=neutral
goals satisfying
individual alone (one's own taste) vs individual group (self preservation, minimizing regret, and informaiton gathering)
another way that attitudes are generated or shaped is
individual values (environmental protection=more positive attitude towards brands that use recycled materials)
western values
individualism, family and children, youth, importance of time, work and play
green heuristic
ineffective, green packaging is friendly for environment must have done something so not effective; add Clorox to it to be effective
likable sources
influence affective attitudes
credibility of sources and company
influence consumers attitudes
affective ads can
influence their mood, brand beliefs
mood/physiological condition
influences what we buy and how we evaluate products; stress impairs info processing, can trigger need recognition (hunger), more impulse buying when in good mood
attention
information has actually been recorded, notice the information
what affects involvement/motivation
information is moderately inconsistent with prior attitudes, goals at stake=risky situations, inconsistency with prior attitudes (process messages that are moderately inconsistent with our attitudes more carefully, drastically incosnsitent=ignore and if highly consistent=may not get attention), create something new with reference to add something old
secondary data
information that already exists somewhere, having been collected for another purpose; collected first
informational social influence
information to help make decisions (WOM) and come from regular consumers but also from opinion leaders or surrogate consumers; social groups source of information
types of reference group influence
informational, normative, identification
elaboration
informtion can be transferred into long term memory if i is processed at deeper level, story line
mood can bias judgements
initial anchor for judgement (good mood=respond positively to new items), consumer judgements by reducing their research for and attention to negative information, judgements by making consumers overconfident about judgements that are reaching
When Do Consumers Adopt Innovations?
innovators, early adapters, early majority, late majority, laggards
VALS categories
innovators, thinkers, achievers, experiencers, believers, strivers, makers, survivors
how much will i feel it
intensity
subjective comprehension
interaction between what is in a message and what consumers already know
personality
internal characteristics that determine how people behave in various situations; person's unique psychological makeup and how it consistently influences the way a person reponds to his or her environment, what makes us different from one another, reflected in consumption choices
external search
interpersonal sources (friends/family), experiential (product samples/trials), independent media (reports/news), retailers=in store info, marketer dominated media=ads
ZMET potential bias
interviewer bias and small sample size (25 people)
maven scale
introducing new brands/products to friends, people ask me for information about products/sales, my friends think of me as a good source of information when it comes to new products or sales
people are
irrational; ikea=more work they like it more
stability
is the cause of the event temporary or permanent
controllability
is the event under the customers or marketers control
focus
is the problem consumer or marketer related
syncratic decision
joint decisions
representativeness heuristic
judging the likelihood of things in terms of how well they seem to represent, or match, particular prototypes; may lead us to ignore other relevant information; o Representativeness Heuristic is when decisions are based on how similar an example is to something else (or how typical or representative the particular case in question is). o Representativeness is basically stereotyping. o While availability has more to do with memory of specific instances, representativeness has more to do with memory of a prototype, stereotype or average. o Find stereotypes o About stereotyping and seeing how similar an example is to something else or how typical or representative the particular case in question is Basically stereotyping Availability has more to do with memory of specific instances, representativeness has more to do with memory o Gym marketing=put stereotype of who goes to gym o Matches representation you have in your mind=more influential o Negative representations=difficult to overcome Rename it and say over and over again this is a different category
single parent/ older children
junk foods and fast foods
Habit and loyalty
keep buying same brand; loyalty=has strong preference that habitual doesn't do • Psychological difference between habitual and loyalty • Tempt someone to change if habitual but not if loyal Habits=popular with small decisions=make things easy
enhance consumer comprehension and awareness pertaining to culture
keeping message simple, repeat message several times, presenting in different forms (verbally and visual)
Brand names used as generic terms
kleenex, clorox, band aid, so common with they are it is used as the name of the category, first on market and then become interchangebale with product, still legal protection
monomorphic
knowledgeable in a single area
disadvantages of secondary data
lack of availability, lack of relevance (not specific enough or definitions or categories might not be what looking for), inaccuracy, insufficiency; out of date
resistance of innovation
lack of human control (algorithm aversion), judgement, such drastic change, inconvenience, sunk cost, cost of getting new product
laws vs ethics
law society's values and standards that are enfroceable in courts ethics=moral principles and value that govern the actions and decisiosn of individual or group
shaping
leading consumers through a series of steps to create a desired response
emotional appeals
emit emotions; disgust powerful emotion can engender negative attitudes and purchase intentions, want to minimize shame and guilt, conflicting emotions=less favorable attitudes, positive emotions=attract consumers, negative=create anxiety
drama can increase
emotional involvement in message, chacters/plot/story, to get consumers emotionally and influence positive attitudes through sympathy and empathy
affective (feelings)
emotional processing, affective responses, attitudes towards the ad
emotional detachment
emotionally disposing of a possession
high intensity
emotions are primacy and inescapable, emotions are subjectively valid (i wont do that just because i feel it is not valid), emotions are predictable and almost universal (cultural differences, but somethings all the same=disgust), emotions are hard to override=stuck with it (hard to verbalize), shape decisions and behaviors
working memory portion
encode or interpret incoming information and keep it available for further processing, conscious information processing, limited in capacity and short lived, requires attention to retain information
underdog strategies
encourage consumer learning because new information could get people to switch brands, instigate learning through comparisons=needs strong distinct advantage, create expectations and use promotions to provide experience for customers, facilitating product trial critical if evidence unambiguous=lead to positive learning experience
persistence
endurance attitudes we hold with confidence may last for long time or brief time and then change (change easily when not loyal or know little about product; difficult if they are brand loyal or consider themselves experts)
values
enduring beliefs that a given behavior or outcome is desirable/good; guide behavior across situations and over time, usually non-conscious; don't change a lot over time; driven by culture and ethnicity
motivation
energy directed at objects, activities, or goals; energy willing to put towards something, always evokes involvement
placebo effect
energy things discounted=don't work well, trick brains into thinking things are difference, simple suggestion like price can influence people's experiences
other antecedent states
energy, cash, attitude about shopping in general
extroversion
energy, urgency, and the tendency to seek stimulation and the company of others
autonomic decision
equally likely for decision to be made by husband and wife but not both
recall example
essay test, reconstruct from memory with no cues
standards are formalized into what?
ethical codes of conduct
brand processing
evaluating one brand at a time
satisfaction definition
evaluation of product after consumption, positive evaluation of decision associated with positive affect
puffery
exaggerated claim=food not look like real thing (representativeness, availability=available in mind), americas best pasta sauce, not regulated
bachelors
exercise, entertainment
personality variables
exhibit stronger attitude behavior relationships , devote a lot of thought to actions=evidence stronger attitude behavior relationships because their attitudes will be based on high elaboration thinking; people guided by their own internal dispositons=exhibit similar behavior patterns, people guided by views and behaviors=high self monitors=adapt behavior to every unqiue situation
TORA provides
expanded picture of how, when, and why attitudes predict consumer behavior
wo models to explain how thoughts are related to high effort attitudes
expectancy value models and cognitive response model
top dog strategies
limitations on learning=advantage because consumers will confirm existing beliefs and be overconfident, avoid high motivation=specific claims that justify consumers evaluation of the brand or encourage consumers not to acquire new information=blocking exposure
what shoppers hate
lines/waiting, being forced to ask/stock outs/obscure price tags, intimidating service (unless they send positive signals)
associative network of ltm
links connect nodes (vary in strength), concepts/feelings/events stored in nodes, directional (one invokes other or not)
means end chain
links consumers knowledge about product attributes with their knowledge about consequences and values
habit involves
little or no informaiton seeking and little or o evaluation of alternatives
most companies focus on
long term profitability and broadening their focus on we to achieve sustainable outcomes (bright side outcome)
positive word of mouth=what temporal focus
long term to encourage future purchases and reinforce brand loyalty
reposition
look perceptual map and want to change, use categorization to move perceptions
problem with demographics
loses some detail=might not represent all business women (non-differentiated groups)
post decision disposal
lots of money in it; second hand markets (ebay), self storage, Patagonia=buy less campaign, donation
evaluations driven by individual events not total outcomes
lottery prefer to win twice, pay to pay fine once, better not to lose anything, if have to have lose want silver lining of small gain to reduce psych cost of loss
choice availability vs satisfaction
low choice availability= no choice can be bad=medium satisfaction (increasing as increase choice availability); limited chocice is best, then too much choice=less satisfaction
celebrity sources
low effort processing
products can advertise to remedy
low self esteem=acne solutions
normative choice tactics
low-elaboration decision making that is based on others' opinions
affect
low-level feelings
odd prices
lower than even
medium
magazines, websites, social media
reducing dissonance
make customers feel good about their purchases (follow up mailings and thank you notes, salespeople at cash registers, alumni newsletters) make customers confident about their purchases (price protection policies, warranties, return policies)
deceptive advertisng: false objective claims
make invalid claim (regulated by FTC)
alternative-based strategy
making a noncomparable choice based on an overall evaluation
attribute based strategy
making a noncomparable choice by making abstract representations of comparable attributes
99%
making income over 200K; think less because social comparison=see richer; housing icnrease in % of income/ food decease/ apparel decrease/ transportation increase/leisure same (working less not spending time on leisure)
two paths to satisfaction
manage outcome (actual)= dliver goods and manage expectations (set accurate expectations/communicate consistent messages/clear and definitive and simple messages to consumers)
sales promotion
many companies cultivates brand loyalty through sales giveaways
consumer behavior ca involve
many people, groups, take on more than one role
who benefits from bright side outcome
marketers (more revenue, more loyalty, more sales) and customers (new products and charity that the companies give back to)
marketing association code of ethics
marketers must do no harm, marketers must foster trust in marketing system, marketers must embrace/communicate/practice the fundamental ethical values that will improve cosnuer confidence in the integrity of marketing exchange system
company reputation
marketing communication do not feature an actual person, consumers judge credibility of company delivering message
nonmarketing soruces of influence
mass media=news/cultural heroines/social media; delivered persoanlly=family/friends/classmates
attitudes do not always
match values (richer individuals believe in giving back but give less % of income to charity)
implcations of materialism
materialistic people can be susceptible markeitng tactics and are interested in luxury brands Check off boxes when vacationing=went to this, do this,etc Not experiential reason Materialistic people less happy Income increases=not more happy Happiness=stays constant Fulfillment vs money spent ◊ Survival ◊ Comfort ◊ Luxury ◊ Enough ◊ Then after that the fulfillment decreases with extravance } Comparisons become painful
smell
may dislike smell=not buy or may love the addition, some want no sent, different across cultures (cola=only universal sent regarded as pleasant)
focusing on our own immediate self interest
may increase our happiness
low effort decisions
may take shortcuts and not take all steps
focusing on interests of others may frame the decision as
me or we (brand, product, company, or coworkers) /me or them (competitors or others outside the organization)
VALS helps
measure consumer actvities, interests, and enduring attitudes and values; classifies consumers by their resources and primary motivation
normative social influence
meet society/group expectations
retrieval errors
memories can be incomplete or distorted or wrong
explicit memory
memory achieved by active attempts to remember=recongition and recall
implicit memory
memory for things without conscious awareness
redundant cues
memory is enhanced when the information items to be learned seem to go together naturally (coke in cup)
sleeper effect
memory of source can decay more rapidly than memory of the message; low credibility sources can be effective
memory decay
memory strength deteriorates over time because it has not been used (forget events from long time ago)
myth of family tech markets
mentor (education tools), limiters (no technology), enablers (gives them technology); affects what customers shop for in features
low effort affective may be due to
mere exposure effect, classical and evaluative conditioning, attitudes towards the ad, and consumer mood
comparative messages
messages that make direct comparisons with competitors
conjunctive model
minimum cutoffs on multiple dimensions, start with all items and reject bad options, crossing off things that dont meet rules, select one that meets all criteria, more realistic
mood vs emotion
mood: low intensity, simple complexity, not focused/peripheral directionaltiy, no physical manifestation emotion: high intensity, complex, specific to stimulus directionality, yes physical manifestation
positive mood tend to think
more abstractly
dressing down
more approachable/friendly
choice depletion
more choices available=worse decision made
if expert want
more choices, for others more option-hard to understand
existing products
more effectively influence with emotional appeals
interruptions in consumer experience makes pleasant experience seem
more enjoyable when resumed
happy
more impulsive and risk taking
men exposed to sexual cues exhibit
more impulsive behavior and more likely to buy or consume right away rather than waiting
affective responses
more influential than cognitive responses in shaping consumers attitudes toward a product, important when ad builds toward peak emotional experience
lead to a positive ad in the context of high effort
more informative ads tend to be better and generate positive responses which positive influence on brand attitude (functional dimension), like=positive feeling hedonic dimension, interesting=curiosity and attract attention
women seen as
more popular and credible than male endorsers
more shelf space heuristic
more popular that's why there is so much
self positivity bias
more positive about ourselves than anything else, smoking bad but wont hurt me; marketing=need to say public, family, then themselves or elaborate on situation (imagine the situation)
who benefits from study of consumer behavior
non profits/marketing managers ethicists/advocacy groups/ public policy makers/regulators/politicans/consumers/ academics
casual research qualitative
none
preattentive processing
nonfocal, pay attention to without knowing paying attention to it, corner of eye, mere exposure effect=familiarity of liking, not subliminal=below threshold of perception
subjective norms are influenced by
normative beliefs and motivation to comply with this significant person
low effort processing
not actively process message arguments or become emotionally involved
indirect actions
not conscious, placebo pills, effectiveness of product=if think product effective think it cleaned/performed better
is focusing on me/we/them bad?
not intrinsically
consumer behavior about single individual?
not necessarily can have combinations of people who may be involved in purchase (group friends/family)
interference
not remembering which features go with which brand or concept due to semantic networks being too closely aligned, more other things get into network=more everything decays
observations
not talking, recording observations in an objective manner; not useful when investigating complex social settings, less useful for studying well defined hypotheses under specific conditions
involvement is not just products
product categories like cars, brands (loyalty=spend more money, spread message, accessories)
What affects normative influence strength?
product characteristics (more influence on what is bought if public consumption and a luxury product), consumer characteristics, group characteristics (coercive power, collectivism, close groups)
why dispose
product failure/loses functional value, product becomes technically obsolete, availability of/desire to upgrade, change of life, patagonia=minimize consumption, fully depreciating the mental value of a durable good
word of mouth
product information transmitted by individual; more reliable/trustworthy form of marketing; influences 2/3 of all sales; powerful when we are unfamiliar with product category; viral marketing; powerful but difficult to control; can be very broad (age) or very local (osu)
determinant attributes
product or service features that are important to the buyer and on which competing brands or stores are perceived to differ; marketers educate don this=born on date or new attribute to differentiate themselves
why do people engage in wom communciation
product related conversation factors: high involvement with product (pleasure), knowledgeable about product (impressing others), genuine concern for others (avoid wasting money), with the expectation that they will receive informaiton in return (reciprocation), to get paid (opinions.com), fund
if stuck in early adopter level
product will be specialized product (niche), need to get to early majority
mood
prolonged state that the person happened to be experiencing that is not directed to particular object (low intensity)
comparative ads
provide link so can be bad thing
customer oriented strategy
provide value for customers, understand groups in marketplace so they can develop strategy that will provide such value; suitable strategy marketers need research to determine how well it is workign and whether it is delivering expected results
consumer behavior covers four basic domains
psycho-logical core, the process of making decisions, consumer's culture, and consumer behavior outcomes and issues
positioning
psychographics (segmenting and positioning)
factors that affect consumer behavior
psychological core, process of making decision, consumers culture, and consumer behavior outcomes
what affects consumer behavior
psychological core, process of making decisions, consumer's culture, consumer behavior outcomes (affect acquisition/usage/disposition)
situational elements
psyhical surroundings, social surroundings, time, purchase task definition, and antecedent states
unethical examples
puffery, missing infromation, allowing incorrect inferences, bait and switch, incorrect statements, misrepresentng selling intent, advertising to children on technology
perceiving
put meaning to object we perceive; interpreting what to see, shaped by prior knowledge;
role playing
qualitative; take yourself out of that situation; projections; pictures=certain emotions
factors affect the credibility of message
quality of argument, whether it is one or two sided message, comparative message
to get valid information about sensitive topics
randomized devices =if heads=answer truthfully
classify innovation by breadth
range of new and different uses for particular product; campbells soup=narrow; iphone=high
lexicographic model
rank attributes by importance and compare one at a time, best on most important attribute to retain to repeat; best on the most improtant attribute; ranking by not setting minimum
elimination by aspects
rank attributes by importance, set minimum level on most important attribute, eliminate brands that dont meet cutoff
availability heuristic
recall information that is more accessible, but not necessarily diagnostic or accurate, more available=more likely
cued recall
reconstruct from cues (marketing cued by brand names=what like/which cheaper)
to reduce risk
reduce uncertainty, reduce perceived consequences of failure (returns/warranties), enhance risk perceptions in purchase domain (risk not buying right brand icnrease motivation to purchase ifnormaiton, risk not buying product=icnrease probability of buying)
attitude accessibility
refers to how easily and readily an attribute can be retrieved from memory (movie last night or attitudes about important events)
less likely to decay if
rehersed
utilitarian aspect
related to products function
hedonic aspect
related to the experience of product use
conjoint analysis
relative improtance and appeal of differnt levels of offerings attributes
working memory
relevant, consumers are motivated to process further and keep it active
recircuation
remember it because you encounter it a lot, 6 times for remembering
baker baker paradox
remember job rather than name
memory is selective
remember the good things that happened
memory can be distorted
remember things that did not happen
brand awareness needs
reminder advertising
weaken node strength
rename, not talk about it
why do we care about post purchase
repeat purchases (5 times more expensive to get new customer), low involvement purchases (attitudes can be found after choice), WOM (influences 2/3 of sales, powerful when we are unfamiliar with product category) (negative >positive)
how to reduce decay
repetition of information (advertising) and by repeatedly retrieving it from memory (circulation)
imagery processing
represent it visually as pciture, smell, how it feels, sounds, taste
script
represents our knowledge of sequence of actions involved in performing an activity; allows you to complete task quickly and easily; do something first time=longer
peripheral route processes
require little thought, and therefore predominate under conditions that promote low elaboration. These processes often rely on judgmental heuristics (e.g., "experts are always right") or surface features of a message (e.g., the number of arguments presented) or its source (e.g., their attractiveness). • In the peripheral route, the amount of elaboration is limited and concentrated on peripheral cues. This does not preclude opinion formation, but it involves a different mental process
discontinuous innovation
requires new learning and consumption patterns by consumers, telegraph to telephone, flying, microwave, rare and big
ethnographic research
researchers interview and observe how consumers behave in real world surroundigns
research desirgned for application
retailers, government data sources, research foundations and trade groups, syndicated data services and advertising agencies and external marketing to consumer good companies
experts
richer associative network with more associations and more concrete and abstract associations linked to concept than novices have, more graded and redefined taxonomic structure of categories, exhibit more flexibility in activating suitable associations and categories than novices; experts make finder distinctions among brands and evaluate more favorable when product infromation is presented in such a way that they feel they are progressig toward their goal
experiencers
risk seeking, enthusiastic, impulsive
expressive roles
roles that involve an indication of family norms, choice style or color
instrumental role
roles that relate to tasks affecting the buying decision, when and how much
marketing ethics
rules of acceptable conduct that guide individuals and organizations in making honest, fair, and respectful decisions about marketing activities
expectancy disconfirmation model
s=actual-expected
symbolic purchases
say something about myself
low motivation
search and attention limited, not a lot of effort put in, behaviors different, don't elaborate on messages, repetition and message source crucial, focus on effort of decision
to put products into evoked/awareness set
search to get out of unawareness set
memory is constructed and reconstructed
see yourself in memory, differ from reality (accentuate something, eliminate others, add some things), consistent with existing ideas/expectations and schemas/mental models of how world works, motivated forgetting of ethical attribute information (environmentally conscious=forgot rainforest)
early majority
seek innovations that offer incremental, predictable improvements on existing technology, price sensitive, willing to wait to adopt; deliberate, many informal social contacts
vicarious exploration
seeking information simply for stimulation
bundled prices
seem more cost effective
geodemographic segmentation
segmenting potential customers into neighborhood lifestyle categories by similarity (suburban vs rural vs urban); need to look at lifestyles not just demographics (mysegments.com)
targeting
select the segment or segments to enter; targeting affected and affects things but strategic decision not consumer based decision
self actualizaiton level
self fulfillment
memory timeline
sensory memory to processing to short term memory to rehersal or elaboration to long term memory
low-effort hierarchy of effects
sequence of thinking-behaving-feeling
traditional hierarchy of effects
sequential steps used in decision making involving thinking, then feeling, then behavior
brand names
serve as retrieval cues
sex
sexual suggestiveness and nudity; consumers prefer mildly provocative ads, men positive attitude toward sexual cues but not like committed relationships
helpful other-focus
sharing of ideas, such as answering questions of friends or strangers posted on social media or posting product reviews that will help others make good purchase decisions
harmful self focus
shoplifting; little harm to society but this illegal and unethical behavior costs the store money=raises prices=penalizing other shoppers while shoplifter benefits
consumers experience a loss, how will they perceive time period until next purchase
shorter because they want to remove negative feeling
examples of dark side
should marketers advertise to children, download or share digital entertainment not officially purchased (benefit me or when and deprive them of revenue)
family sizes are
shrinking
increase interference
similarity between products, brands, and ads
choice tactices
simple rules of thumb used to make low effort decisions
price related tactics
simplifying decision heuristics that are based on price
nontraditional family structures
single person households, DINKs, Unmarried homes, same sex households, sandwich generation, boomerang kids
attitudes and behaviors not always linked
situational factors (external=barriers price), sensory stimulation, rewards/punishments, actions of others, does fit needs, dispositonal factors (internal like genetics/personality)
sexual suggestiveness
situations that either portray or imply sexual themes or romance
laggards
skeptics, resist innovations; fear of debt, neighbors and friends are information sources
system 2
slow, deliberate, analytical and consciously effortful mode of reasoning about the world Lazy endorses their heuristics answer without bothering to scrutinize whether it is logical Use this sparingly=alarm bells to engage this and something needs to be scary
newlyweds
small appliances and home furnishings
olfactory
smell of bakery
sensory registry/memory
smell/taste/1-2 sec, need to process it in short term to memorize it
when marketers and consumers make decisions, they can face conflicting priorities and outcomes, attempts to resolve these conflicts can raise ethical issues like
social and temporal dilemma
Is income or social class a better predictor of consumer behavior?
social class predicts symbolic purchases with low to moderate prices, income predicts major expenditures with little symbolic meaning, both income and social class needed to predict purchase of expensive/symbolic products, small things=symbolic, and large=icnome prediction
have vs have nots
social class, determined by income/family background/occupation; determines how much we spend and how we spend it
idealized body image
social comparison theory, individuals have a drive to compare themselves to other people
how to get to mass market
social media (visible/educate people), more affordable, alternatives less attractive, more accessible, try out, social risk=go viral
secondary needs
social, personal, and self actualization
quantitative
survey data (advantages=attitudes knowledge, intentions, brand awreness) (disadv=social desirability biad, not truthful, correlation not causation); experiments
primary data types
surveys, focus groups, experiments, and like to support their own marketing decisions
fraudulent symbol
symbol that becomes so widely adopted that it loses its status
using: whether and why use certain products
symbolize something about who we are/what we value/what we believe
performance related tactics
tactics based on benefits, features, or evaluations of the brand
affect-related tactics
tactics based on feelings
divisible attention
talk on phone and clean house, follow two conversations in two different languages
taste
taste tests, adding descriptive words to marketing communication about foods
unhealthy heuristic
tasty; infer fried is tasty
nudity
technique often used by brands within industry
perceptual maps
tell you how your brand and your competitors brands are currently perceived, how describe on attribute, what is consumers ideal
disposition time period
temporary (loaning or renting) or involuntary (losing or destroying item)
confirmatory bias
tendency for expectations to guide performance perceptions, horoscopres, see what you want, supports their prior expectations
halo effect
tendency to assume that if one attribute good=good on everything; tall people=better jobs, brand extensions rely on halo effect
resources vals
tendency to consume goods and services extends beyond age/income/education; self confidence intellect/novelty/leadership/vanity
hypothesis testing
testing out expectations through experience
zone of acceptance
the acceptable range of prices for any purchase decision
conspicious consumption
the acquisition and display of goods and services to show off one's status; veblen theory; time for leisure tht is the way you signal to the world you are high class; today signal with houses/clothing/cars; needs to be visible to be symbolic product
negative word of mouth communication
the act of consumers gyring negative things about a product or service to other consumers
perceived relative advantage
the degree to which a product is better than the product it replaces (+)
compatibility
the degree to which a product is consistent with existing values, existing consumption experiences, and or existing technology (+)
ease of trialability
the degree to which a product may be experimented on with limited basis (+)
observability
the degree to which product usage and impact are visible to others (+)
perceptual fluency
the ease with which a stimulus is perceived after repeated exposure
associations can also influence
the emotions (fat free ice cream=not good)
disconfirmation
the existence of a discrepancy between expectations and performance
law of small numbers
the expectation that information obtained from a small number of people represents the larger population
tie strength
the extent to which a close, intimate relationship connects people; weak=good to advertise across networks
informational influence
the extent to which sources influence consumers simply by providing information
perceived risk
the extent to which the consumer is uncertain about the consequences of an action, for example, buying, using, or disposing of an offering; perfomance, physical ,social, psychologicla, time risk, and fianncial risk
dissatisfaction
the feeling that results when consumers make a negative evaluation or are unhappy with a decison
marketers need to break through clutter
to get attention
ego-focus reponses lead
to more favor
shopers love
to touch and trial, mirrors, discovery, bargains
value system
total set of values and their relative importance
focus groups
trained moderator with 6-12 respondents to discuss marketing problem by responding and reaction to each other
strivers
trendy, approval seeking, disenfranchised
touch
trial sizes, samples, demonstrations, exhibits
financial records can be unethical t/f
true, feel pressure to focus on now and me/we, inflate financial results=bankruptcy
sources credible
trustworthiness, expertise, and status
more effective in central route
trustworthiness, expertise, status, matching product and endorser, credibility,
missing information
truthful claim made in an ad can still be deceptive, what they didnt say
older couples/bachelors
trvael, entertainment, home maintenance services
sadness
try to get out of promotion focus, take risk and do different things, risk/high reward options, promotion focus=seeking rewards
how easily understand the passage
try to read procedure=just give information not memorable
variety seeking
trying something different
central route processing
type of information processing that involves attending to the content of the message itself
inept
unacceptable
repeated exposure reduces
uncertainty about stimulus and increases customers opportunity to process it and that these factors are what affects consumers attitudes rather than familiarity
steps in classical conditioning
unconditioned stimulus (meat powder) to unconditioned response (saliva) if US is paired with conditioned stimulus (bell) get conditioned response (saliva)
segmenting consumers: psychographics
understand why? values/personality/life styles (can same demographics be further segmented based on the why's)
attitude toward the ad
understanding the affective bases of attitudes in low effort situations; like as so they transfer positive feelings from ad to brand(globally acceptable); may be the best indicator of advertising effectiveness
set diagram
universal to awareness to consideration and inept to choice set
exposure
unless exposed to idea or ad, can't pay attention to it; process by which consumer comes into physical contact with the stimulus we have the ability of noticing the information
in low effort situation consumers
unlikely to think about what the product means to them, relate empathetically to characters in ad, or generate arguments against or support brand message
messages weak
unlikely to think that they offer credible reason for buying
social class
upper class values giving back, but poor give more as a percentage
how social class changes
upward/downward/social class fragmentation
greenwashing
use green sustainable marketing to make things appear green; certified, hidden tradeoffs, smoke and mirrors (not accurate), vagueness, false labels, irrelevant attributes, bold lies
change normative beliefs
use others judgement to change your mind
humor
used a lot in tv and is extensive, increase cosnumers liking, more appropriate for low involvement offerings in which generating positive feelings about ad is critical; unless humor tied to product=ignore the brand
family life cycle not so simple anymore
used to be: single to married without childre to married with children to dependent/kid now: many differet types of homes
compensatory processes
utility mode=maximize utility, good attributes compensate for bad/low attributes
what will i feel
valence (good or bad), nature of feeling(specific emotion such as happiness)
VALS
value and life style survey, 4 demographic and 35 psychological items
marketers want to know___ about usage
whether they find it effective, control their consumption, and how they react after using it (WOM +/-)
consumer behavior involves many decisions
whether to acquire/use/dispose of offering; what offer to a/c/d of; why a/u/s of an offering; why an offering is not a/u/d of; how to a/u/s of an offering; ways of acquiring an offering; ways using an offering; ways of disposing of an offering
the totality of decisons
whether, what, why, how, when, where, how much/how often/how long
behavior is influenced by behavioral intention
which is influenced by attitudes toward the ad and subjective norms
purchase task definition
why are you buying for self or gift; unplanned buying
census
widely used, demographics see how population shifts
social risk
will it hurt my social standing?
performance risk
will the product perform?
humor more effective
with certain audiences than others; younger more educated males respond moe positively, used around globe
VALS change
with life stages
projective techniques: when direct questions fail
word association, sentence completion, cartoon test, third person techniques/role playing, consumer drawings, thematic appreciation test, brand personification, collages, photosort, write obituaries, carry on both sides of conversation with a brand, ZMET
how to identify needs
word association, sentence compltetion, brand personality with zmet or personality collages, in depth itnerviews
good reputational influneces
work to develop a positive image though corporate advertising; check to see if source and message credible
lifestyle dimensions: activities
work, hobbies, social events, vacation, entertainment, club membership, shopping, sports
false objective claims
wrong and regualted by laws
Is consumer behavior dynamic
yes, sequence of events occur over time
prospect theory rules
• 3 Rules of DM: Individual Events o Rule #1: People act differently when something is framed as a loss vs. a gain o Rule #2: Losses loom larger than gains o Rule #3: Evaluations are driven by individual events, not total outcomes
ways of acquiring an offering
• Consumers decide whether to acquire an offering , how decide to pay • Related to consumers buying decisions=show consumers can acquire an offering in other ways • Sharing is a form of acquisition=sharing prossessions within family of sharing video on social media
changing attitudes to change behavior
• Desire consistency between our attitudes and behavior • When they are different we suffer from cognitive dissonance (discomfort) o To reduce=change attitude or behavior
ways of using an offering
• Ensure that their offering is used correctly • Improper usage can cause health/safety problems • To make warnings more effective have to understand how consumers process label information
reference point
• Loss or gain determined by external reference point • Determines whether something is coded as a "gain" or a "loss" • Used to make evaluations
iconic
things we see, drive past sign and see quickly
discursive processing
think of object and represent it with the word
counterargument
thought that disagrees with the message
cognition vs affect
thought vs emotion
elaboration likelihood model
thought, central vs peripheral
support arguments
thoughts that affirm the claims made in the message
source derogrations
thoughts that discount or attack message source
cognitions
thoughts we have about information received from external source or info from memory; provoke thinking about product and stimulate positive product attitudes
most demonstrations of mere effect have occurred in
tightly controlled laboratory studies, some experts question whether it generalizes to real world
implications In importance of time
time is a currency (resource we try to maximize), sell time/simplify life to save time=popular
Perspective matters
time perspective for immediate or delayed consumption (immediate=concrete) (future=want bigger assortment); distance (closer want larger options); only way to get them to want smaller assortment=choice before looking at options
opportunity
time, distractions, amount of infromation, compelxity, repetition, availability of offering, situation factors (affect ability to process info), affect ability to act (make pruchase)
need balance between present and future T/F
True
expectation
belief about how a product/service will perform
attitude toward the act is influenced by
beliefs about consequences of an act and the evaluation of the consequences of an act
low effort processing occurs
below conscious awareness
more choices
better finding what i want, lower prices, higher quality options, more effort
does segmentation mean that you have to appeal to everyone
no just putting people into categories, but don't need to target everyone
how much, how often, and how long to a/u/d of an offering
Make decisions about how much of good or service they need, how often it is needed, how much time they will spend Usage decisions vary between persons, cultures Sales of a product can be increased when the consumer uses larger amount of the product, uses the product more frequently, or uses it for longer periods of time Bonus packages may motivate consumers to buy more of a product • Food productspmore likely increase consumption when the stockpiled item requires no preparation • Usage also increase when cosnmers sign up for flat fee pricing covering unlimited consumption of services o Many consumers who choose flat fee programs overestimate their likely consumption, they often pay more than if they had chosen per usage pricing Consumers experience problems because they engage in more acquisition, usage, or disposition than they should • Compulsion to overbuy • How consumers ability to control consumption temptations and what happens when self control falters
interdisciplinary influences of study of consumer behavior
Many different perspectives/fields: Marketing, Psychology, Sociology, anthropology, neuroscience, economics, statistics
where to a/u/d of an offering
More choices of where to acquire/use/dispose of an offering than the have ever had before • Internet=where acquire/use/dispose of goods o Convenience or the price or to acquire unique product Make decisions about where to consume various products • Need privacy=stay home, wireless=phone calls Make decisions regarding where to dispose of good • Older consumers=what will happen to their special possessions after their death and about hwo to divide heirlooms • Recycling unwanted goods
satisfaction actions
Repeat purchase intentions Increased positive WOM Basis for positive emotional connection to the brand and brand loyalty
how marketers improve memory
Simple message Repetition/recirculation (head on) Rehearsal/elaboration Uses imagery Chunking=1800flowers
non compensatory
Simpler decision models (but sill fairly high effort) Being bad on one dimension cannot be made up for
whether to a/u/d of an offering
Spend or save/how much decide to spend is influenced by their perceptions of how much they spent in the past Consumer spending by age Decisions about whether to acquire, use, or dispose of an offering are often related to personal goals, safety concerns, or a desire to reduce economic, social, or psychological risk.
factors include who gets blamed
Stability: is the cause temporary and permanent Focus: marketer/brand's fault or my own? Controllability: marketer/brand control?
self positivity bias def
Thinking bad things happen to other people, but not to us Reason why people smoke, drive drunk, speed, bake in the sun o (Social) Marketing Implication: Have to convince people they are indeed at risk Ask them to calculate population risk, then friend's risk, then their own risk Imagine or elaborate on situation
when to a/u/d of an ofering
Timing of consumer behavior depend on perceptions of and attitudes toward time • Time for me or others • Acquiring or using an offering is planned or spontaneous • Weather, time of day • Our need for variety can affect when we acquire, use, or dispose of an offering=sandwich today or not • Transitions=graduation, birth, retirement, death • Affected by knowing when others might or might not be buying or using it o Choose to go to gym when we know the other will not be doing so o Buy when on sale o Waiting to cosume pleasurable product=increases our enjoyment of its consumption Acquire a new, improved version of a product we already own • Dififcult when current model still works well or has sentimental value • Affect whether and when onsumers upgrade by providing economic incentives for replacing older products
why an offering is not a/u/d
Try to understand why consumers do not acquire, use, or dispose of an offering Consumers who want to acquire or consume offering are unable to do so because what they want is unavailable Ehtnics and social responsibility can also play a role May want to avoid products made in factiories with questionable labor practices
what offering to a/u/d of
Us household spends an average of $138 per day on goods and services Choose among products or service categories (food vs music), between brands (kindle or nook) Choices multiply daily as marketers introduce new products, sizes, and packages
dissatisfaction actions
Voice Response Complain to firm Product returns Private Response • Complain to friends (negative WOM), boycott firm Third-Party Response • File official complaint, take legal action
most famous products that failed focus groups
the Seinfeld pilot (needed a "stronger supporting cast") the Sony Walkman Baileys Irish Cream the ATM ("too impersonal") the Herman Miller Aeron chair
Milgram Electric Shock Study
"teachers" instructed to teach "learners" by shocking them shocks ranged from 15V - 450V all subjects expected to disobey by 135V none expected to ever go above 300V teachers 63% gave full shock and 65% ignored heart condition
% off better than
$ off
retrieval is affected by
(1) Characteristics of the stimulus itself (2) what the stimulus is linked to (3) the way the stimulus is processed (4) consumers characteristics
antecedent states
(what do you bring into buying the situation in terms of mood, physical states, etc)
segmenting consumers: demographics
(who?) observables=age, gender, family structure, social class/income, race/ethnicity, geography
Influence of Consumer's Prior Expertise on Search
- Moderately knowledgeable consumers tend to search more than product experts and novices Experts: selective search Novices: often just use others' opinions
continuous innovation
- Only minor changes in behavior are required for use - No new behaviors must be learned - Limited effect on existing consumption patterns package changes, different versions, different flavors, do this to keep up with needs
focus group purpose
- engage in brainstorming - generate ideas - uncover attitudes and opinions not measure attitudes can make misleading generalizations using too small sample size open ended questions
factors affecting informational influence strength
- product characteristics (complex) - consumer and influencer characteristics (expert) - group characteristics
3 things necessary for causation
1.) temporal precedence 2.) covariation of cause and effect 3.) rule out alternative explanations
Unmarried homes
1/3 births to unmarried women
weights positive experiences different than negative
12 positives for every negative experience
innovators=when to adopt innovations
1st to hear about and acquire new products, adventurous, not afraid to try something new; visionaries/hgiehr educated/use multiple info sources
pepsi refresh campaign
2010 super bowl didn't air commercial, applications for grants instead, such a positive response and media coverage expanded internationally in year 2, supercharged fundraising and volunteer efforts of community groups working on socially responsible projects
children as decision makers
3 distinct markets: primary (own decisions), influence (parents), future market begin making brand connections as early as 8 years old
ZMET process
6-8 pictures that reflect thoughts and feelings; process topic then go through 1 on 1 interview; metaphors; after interview=create collage=executive summary of ideas
wealth
90% of wealth owned by top 20%; not equally distributed
Offering
A product, service, activity, experience, or idea offered by a marketing organization to consumers.
neuroticism
A tendency to easily experience unpleasant emotions such as anxiety, anger, or depression.
ZMET (Zaltman Metaphor Elicitation Technique)
A visual research technique used in in-depth interviewing that encourages research participants to share emotional and subconscious reactions to a particular topic
Michelin tires ZMET
noah arc, container= holder of safety for their children; connection
sensory marketing
process of systematically managing consumers' perception and experiences of marketing stimuli
specificity of attitudes
Attitudes tend to be good predictors of behavior when we are very specific about the behavior that they are trying to predict; measuring attitudes toward skydiving in general would be less likely to predict behavior than measuring attitudes toward skydiving lessons
TORA equation
BI=behavior intention= sum attitude (belief*evaluation)+sum(normative beliefs * motivation to comply)
Best Buy example psychographics
Barry=huge entertainment sections; Jill=play area; Bb4b=technicians; find most profitable group for each store and then customize store to parameters
availability bias
Basing judgments on information that is readily available what you have been exposed to
attractive sources
Beauty sells Increases believability and actual purchases
concern for welfare of consumers
Federal Trade Commission (FTC) Bureau of Consumer Protection (BCP) Food and Drug Administration (FDA) Federal Communications Commission (FCC) Environmental Protection Agency (EPA) National Highway Traffic Safety Administration (NHTSA)
makers
Homegrown, self sufficient, macho, family oriented
culturally constituted product meaning
Can come from marketer-dominated sources and non-marketer dominated sources (opinion leaders, the media); stella artois=high end beer because glass
avoidance-avoidance conflict
Conflict that results from having to choose between two distasteful alternatives
inherent conflict?
Conflicts often arise between the goal to succeed in the marketplace and the goal to maximize consumer well being
Should Marketers Pay Attention to Special Possessions?
Consumers will not sell at market value Purchase with little regard for price i.e, price insensitive Few (if any) replacements Will not discard even after lose functional value Consumers personify special possessions e.g. give them names, use a masculine/feminine pronoun when referring to them
physical surroundings
Crowding, lighting, store layout, presentation, music playing, number of registers open, concrete physical and spatial aspects of environment that encompass a consumer activity, atmosphere to emotional response (pleasure/displeasure, arousal/boredom) to behavior (time in store, liking of store, buying)
ethical codes static? T/F
False, growing movements about environmental concerns and the treatment of employees change the ethical codes people follow
unethical behavior is illegal T/F
False, may not be illegal but violates generally accepted rules of conduct or formal ethical code observed by marketer, dishonest/unfair/disrespectful
external secondary data
Data collected by outside agencies such as the federal government, trade associations, or periodicals; what strengths and weaknesses are
Internal Secondary Data
Data collected by the individual company for accounting purposes or marketing activity reports; demographics of customers; help line; good starting point
psychographics used to
Determine market segments Determine consumers' reasons for choosing products Fine-tune offerings to meet needs of different segments Determine how to most effectively communicate with segments
Marketers can increase self-referencing by
Directly instructing consumers Using the word "you" in an ad Asking rhetorical questions Using visuals of common consumer situations
time risk
Do I have the time to invest in it?
direct or imagined experience
Elaborating on actual experience with a product or service (or even imagining what that experience could be like) can help consumers form positive or negative attitudes.
family and children
European and asian parents tend to value education more than American, American parents=fun childhood and place a high value on children
family life cycle effects on buying
FLC model categories show different consumption patterns
hindsight bias
I knew it all along, overconfidence, look back at events and believe you predicted correctly (inflated by 15-20%), rely on intuition in future
decision delay
If consumers perceive the decision to be too risky or if it entails an unpleasant task, they may delay making a decision; too many attractive options
income partly related to social class
Income increases as age increases Older workers are not in higher social classes than their younger counterparts Dual-career families may have higher income but not higher status
by decision-making units
Information gatherer, influencer, decider, purchaser and user
thinkers
Information seeking, satisfied, reflective
physical risk
Is it safe?
what can you do with consumer behavior
Knowledge and data about customers identify threats/opportunities to a brand and help to define your market (market segementation)
emotional reactions
MAO and processing can be high here as well; strong emotional processing when affective involvement is high, feelings more likely to influence attitude when they fit with or viewed as relevant, reviewed under extreme time pressure, if relevant to memory
top 10 icons
Marlboro man, Ronald McDonald, green giant, betty crocker, energizer bunny, Pillsbury doughboy, aunt jemima, Michelin man, tony the tiger, and elsie=borden diary products
heuristics
Mental shortcuts or "rules of thumb" that often lead to a solution (but not always).
limited problem solving
More straightforward/simple Lower risk/involvement Less search Limited shopping time/venues/# brands or attributes ocnsidered, limited search, not put effort into all 5 steps, medium MAO, mostly internal search; noncompensatory rules
system 1
Our fast, automatic, intuitive, and largely unconscious mode; heuristic; imperfect in answering hard questions
survivors
Passive, Risk Averse, Constrained
maslow hierarchy of needs
Physiological -----> Safety -----> Belonging and love -----> Self esteem -----> Self actualization
positive vs negative reinforcement
Positive- increasing behaviors by presenting positive stimuli, such as food. (coupons) Negative- increasing behaviors by stopping or reducing negative stimuli, such as shock (only special treatment to members)
Marketing 4 P's
Price, Product, Place, Promotion
examples of acquiring
Renting, leasing, trading, and sharing, borrowing, gift giving, finding, stealing
consumer ethics
Rules of acceptable conduct (such as honesty, fairness, and respect) that apply to the range of consumer behaviors
How Do Offerings Diffuse Through a Market?
S-Shaped Curve Exponential Curve; a diffusion curve characterized by slow initial growth followed by rapid increase in diffusion
advantages of secondary data
Saves time and money if on target Aids in determining direction for primary data collection Pinpoints the kinds of people to approach Serves as a basis of comparison for other data
internal search
Scanning memory to assemble product alternative information
What is STP?
Segmentation, Targeting, Positioning
peripheral route cognitive and affective
Source cognitive=appear credible soruce affective=attractive/likeable/celebrity message C: simple, schema consistent, repetition, self relevant message A: pleasant music/humor/sex
enhancing retrieval
Stimulus Processing Consumer characteristics (mood, expertise); remember something about specific brands
Knowledge Flexibility
The content and structure of knowledge are flexible and adaptable to each individual, at each occasion; depends in part on the consumers specific goals and the time to implement these goals
expected utility theory
The idea that people are basically rational, so if they have all of the relevant information, they will make a decision that results in the most beneficial result.
consumer behavior definition
The totality of consumers' decisions with respect to the acquisition, consumption, and disposition of goods, services, time, and ideas by human decision-making units (over time).
high motivation
active search, elaborate messages, focus on message content, accuracy of decisions, already processed everything, attitude change is more difficult
sensory memory
ability to temporarily store input from all five senses, stored automatically and retained only briefly (1/4 sec to several seconds)
research designed for general understanding
academci researchers
search is not always
accurate because relying on biad
memory can be confused
accurately remember certain parts and then less of other (source confusion)
about the consumption
acquisition, usage, disposition
Problem recognition can come from which stage of consumer process
acquisition/consumption/disposition
steps in operant conditioning
action to consequence to change in behavior
exposure to evidence
actually experiencing the product or service
activated knowledge varies based on time to act
associations become activated in consumers associative networks depend on time to implement goals (far away from goal=more abstract knowledge about desirability of attaining goal becomes salient); close to goal=concrete knowledge about feasibility, attaining goal becomes salient (who invite)
repetition jingle
associative learning=automatic, learn without trying; learning higher level assocaitons, much more in depth and rich=requires cognitive learning; get stored into long term memory; effectiveness decreases over time
correlated associations
associative network contains attributes that are linked in the consumers mind; affects ifnerences of brand
selective atention
at part, buss, hear name from across the room=cocktail party effect, tend to notice name and selecting to not pay attention to other objects
did you look at it once exposed
attention
cognitive or affective responses to ad to
attitude toward ad to brand beliefs and atittude toward brand to intention in purchase
equation of multiattribute model
attitude toward object= sum of beliefs about the object*evaluation of attribute importance and valence
knowledge and experience
attitudes are more likely to be strongly held and predictive of behavior when the consumer is knowledgeable about or experienced with the object of the attitude
Level of involvement/elaboration
attitudes are more likely to predict behavior when cognitive or affective involvement is high
accessibility of attitudes
attitudes are more strongly related to behavior when they are accessible or "top of mind"; direct experience increases attitude accessibility for attributes that must be experienced whereas advertising can produce accessible attitudes for search attributions when level of repetition is high
regulatory fit
attitudes can be formed through emotional route to persusasion
peripheral examples
attractiveness, likeable soruces, nudity, mood: pleasant visuals,music, and hiumor
search for
attributes (price/capabilties/qualtiy), evaluations/attitudes (evaluations from others and from memory), and experiences (past experiences)
additive compensatory rule
attributes not explicitly weighted; choose points for each attribute pounds=-1 point per pound, +1 point per $10 pick one with highest points
involuntary attention types
audio, movement, color (red or yellow) (what do you expect=color pops out unless expecting it to be colorful), size, sex, humor (quick to understand and clear), novelty (new in interesting way) (windex ad looks like it is cleaning), novel name (fcuk), novel location (pothole), prominence, position, volume, surprise, suspense, music, personally relevant
US recycles
auto batteries, office type paper, steel cans, yard trimmings, aluminum cans, tires, glass containers, plastic milk bottles
psychological reactions and neuroscience
automatic eye movements, heart rate, skin conductance
Routine Problem Solving
automaticity: decision with little or no conscious effort MAO low, not going through all 5 steps, no comparison between brands/attributes, habit, internal search only, no brand alternatives; heuristics
the big three
availability, representativeness, base rate neglect
avis
avis behind hertz, embrace second status, never called out hertz by name but accusation implicit, audience receptive to humble advertisements
same sex households
being acknowledged, marketers targeting them, mostly ignored but more and more designed and advertised
are people from states more patriot
base rate fallacy, didn't take into account state population
hierarchical structure
basic, subordinate, and superordinate (broadest)
a successful productmust
be adopted by innovators and early adopters, but most sales come from early and late majority
sexual themes can
be effective and can evoke emotional ways, attract attention and emotions like arousal; some dont like it=disgust; used carefully and not be deameaning
adoption describeds
behavior of an individual diffusion is about the whole populaton of consumers
deviant consumer behavior
behavior that is regarded as deviant if it is either unexpected or not sanctioned by members of society (whether or not the behavior is illegal or unethical)
simple messages
can be effective because consumers do not have the MAO to process much
disposition spectrum
can be physical things and anything that reflects an extension of the self, body parts, other persons, pets, laces, services, time periods, and events
research shows that the mere exposure effect
can help an unknown brand compete against other unknown brands if product performance are equivalent and consumers invest little processing effort at the time of brand choice
financial risk
can i afford it, what happens to may investment if something goes wrong
the message
can influence consumers with emotional or fear appeal
downside emotional appeals
can limit amount of product information consumers can process because focusing on emotions
limited attention
cannot be divided indefinetely, turn down radio when looking for something
operant conditioning
carrots and sticks, action associated with consequence to change behavior, +/- reinforcement
descriptive research qualitative
case studies
cognitive response model
categorizes thoughts: counterarguments/supportarguments/source derogations; more CA and SD less favorable attitudes, more SA more favorable attitudes
mental accounting
categorizing spending and saving decisions into "accounts" mentally designated for specific consumption transactions, goals, or situations; tax refund vs paycheck; sunk cost effect=a case of loss aversion; frame purchase to fit inside people's budgets
casual vs quantitative
causal=what is happening; quantitiative=measurement
ways epople process message
central and peripheral route
high elaboration (high thought)
central route, careful scrutinty determine merits of arguments, persusive outcome determined by thouhtful responses to message
classical conditioning
certain associations carry forward
aesthetic innovation
change flabor, new foods, new types of mustic
categorization
changes inferences, influences search
emotional attachment
characterized by feelings that promote a sense of closeness, bonding, and connection; stronger predictor of actual purchase behavior than brand attitudes; to develop this project brand personality that fits well with consumers actual self image
Compromise effect (extremeness aversion)
choose middle option, give customers three related choices at different prices
voluntary attention
choosing to pay attention to it, driven by motivation, personally relevant, want consumers to do this=contain infor that is important and relevant or interesting to them
experiment example
classic shopping list, nescafe=lazy/poorly organized add pie no effect
marketers continuously study consumer behavior for
clues to who buys, uses, and disposes of what goods and services, as well as clues to when, where, why, and how they make decisions
attitudes can be based on
cognitions and emotions
syndicated data services
collect information and make it available to multiple subscribers, nielsen
primary data
collected for its own purpose; collect from few people or compile data from huge samples; research with purpose=guide companies in making more informed decisions and achieving marketing results
vision
colors influence attention to and liking of product
integration of evidence
combining new information with stored knowledge
both additive and compensatory will
come out with the same results
higher risk
comes with higher prices, not always the case, something involving might be small
stuy consumer behavior
common mistakes: use of intution and common sense (easier, more vivid than collecting and analyzing data, more likely with increased experience); make decisons based on few observations, biases (projection/overconfidence/surface summaries/reasoning by analogy); people infer causality from correlations
little processing effort what factors influence cognitive reasonging
communicatin source, message, context
decision rules
compensatory, non compensatory, heuristics
why conform
desire for rewards want to be liked/be like another asume others have more info than you
experiments
determine cause and effect
database marketing
data mining=every item solve
creating needs
debeers, moving up idealm ideal state moved upward
retrieval failures
decay, interference, and serial-position effects
retrieval failures and errors
decay, interference, comparative ads
temporal dilemma
deciding whether to put immediate interests or long-term interests first; short term interests or long term interests
social dilemma
deciding whether to put self-interest or the interests of others first; me(individual), we (family/friends/employer/human beings/colleagues), them (others. competitors, people in other countries, or society at large)
ZMET uncovers
deep metaphors in minds of consumers and how consumers use metaphors to frame the world around them
complexity
degree to which a product is difficult to understand and use (-)
what increases regret
deliberation and more choice/larger consideration
what icnreases regret
deliberation, choice overload and decision paralysis, decreased satisfaction with product and less satisfaction with choice process
how to deal with bad word of mouth
deliver sincere apology, stop talking about=what something to fade stop talking about it and come do your best and then hope it dies out
companies use social media
deliver speedier, more personalized customer service, to keep customers informed, and to react to complaints; public way company listens and responds to its customers
likelihood that a particular brand is chosen
depends on whether it is remembered when consumers make a choice
emotional contagion
depict people expressing an emotion, with the goal of inducing consumers to vicariously experience that emotion; happy feeling in commercial=transfer feeling to company, person needs to experience rewards and consequences
managers need to address what in ZMET
depth deficit; lack of deep/imaginative/bold thinking in firms; fail to go into unconscious of minds; need to look for shared dimensions=deep metaphors
scarcity heuristic
desirability, run out people want it/not enough in stock; limited time only deals=scarcity is desirable
terminal values
desirable end-states of existence; the goals a person would like to achieve during his or her lifetime; attributes to consequences to values
measuring evaluations
e; what is your evaluation of the belief (good or bad) -3 to +3; evaluations of individual beliefs; can be positive or negative; one evaluation for each belief; how desirable is it that a university has a business school or is it good thing o bad thing that they have business school
values developed
early and impacted by our family, can shift as result social trends
prototypicality
easier to recognize pioneer brands, likely to be linked to many other concepts in memory
peripheral cues
easily processed aspects of a message, such as music, an attractive source, picture, or humor
why family size shrinking
education level of women, religion, availability of birth control; europe 1.5 births, divorce, older people now pursue non grandchildren activities, kids expensive, want to enjoy their life
positioning away from prototype
effective way to differentiate a brand
motivation and ability determine
elaboration; Motivational factors include (among others) the personal relevance of the message topic, accountability, and a person's "need for cognition" (their innate desire to enjoy thinking). Ability factors include the availability of cognitive resources (e.g., the presence or absence of time pressures or distractions) or relevant knowledge needed to carefully scrutinize the arguments. Under conditions of moderate elaboration, a mixture of central and peripheral route processes will guide information processing.
message context
embedded in happy tv program=evaluated more positively, how well like program=affect our feeling about ad; emotionality in store can influence our mood about the ad
decision illustrations
more quantitative in nature and rely on heuristics that we have already established o Much more likely people pick the more certain option if saving life, certain lives lost=take the chance to make the loss go away Framing shouldn't matter but it does matter LOSS/GAIN Time risk=choose airline 2 because on time 90% of time, late 15% time=choosen (take risk) If trying to deny==focus on bad to make decision If you are trying to award=find information beneficial/good and overweigh this attribute Choose/eliminate Change framing=risk taking changes
maximizers
more regret, less life satisfaction, less optimistic, more depression, worse at forecasting and more overconfident, fet paid more but less happy with jobs; anticipated regret
hedonic treadmill
more you see differences what made you happy in past will no longer make you happy in the future
promotion focused goals
motivated to act in ways to achieve positive outcomes, focus on hope/wants/ accomplishments
consumers with prevention focused goals
motivated to avoid negative outcomes, focusing on responsibilities, safety, and guarding against risk; want to focus on safety
make decision need to be
motivated, able, and have the opportunity to be exposed to/perceived/ attend to information
how long we search depends on
motivation (importance of task, involvement, perceived costs, discrepancy of information), ability expertise, opportunity=availability of information/time
steps in consumer behavior
motivation/ability/opportunity to exposure/attention/perception to categorization to attitude formation and change to memory and retrieval to decision
chunking
much easier to remember
losses loom larger than gains
mug=if own mug then higher value; merely processing an object increase its value
TORA (theory of reasoned action)
multiattribute +subjective norms. predicts behavioral intentions not attitudes, changing attitudes can change beliefs/evaluation of belief/add new attributes or new belief
expectancy value model types
multiattribute attitude model and TORA=theory of reasoned action
recognition example
multiple choice test, identify stimulus we have seen before
what do we perceive
must be at such a level that we can detect them
need recognition v opportunity recongiton
need recognition: current state move downward (snicker) (not a new ideal, bring you back to status quo), opportunity recognition: idea state moved upward
sensitive topics in surveys
need to be anonymous, underreport negative behaviors and overreport positive
short term memory
need to reherse or elaborate on these thought to make it, portion where incoming information is encoded and itnerpreted, working memory where things work and temporariy store thing; 18 sec capacity, anything up to 7 can keep here
key to oerant
need to take away reward and still maintain behavior
consumers buy things to satify
needs, products=way to satisfy need (hole so buy drill bit)
which emotions strogner
negative stronger, once put emotion behind something then i feel emotion only once donating funds stay the same (scope insensitivity)
big 5 personality traits
neuroticism, extraversion, openness to experience, agreeableness, conscientiousness
symbolic innovations
new social meaning, products and appearances, cancer bracelets, goal is to say something about itself
fab four
nike, apple, mcdonalds, coca cola`
surprise/suspense voluntary
no ending, need for closure, go and search for ending; rewind or shared (sharing content)
top 10 slogans
o "A diamond is forever" - DeBeers o "Just do it" - Nike o "The pause that refreshes" - Coca-Cola o "Tastes great, less filling" - Miller Lite o "We try harder" - Avis o "Good to the last drop" - Maxwell House o "Breakfast of champions" - Wheaties o "Does she ... or doesn't she?" - Clairol o "When it rains, it pours" - Morton Salt o "Where's the beef?" - Wendy's
top 10 jingles
o 1: "You deserve a break today" (McDonald's) o 2: "Be all that you can be" (U.S. Army) o 3: "Pepsi-Cola hits the spot" (Pepsi-Cola) o 4: "Mmm mmm good!" (Campbell Soup) o 5: "See the USA in your Chevrolet" (GM) o 6: "I wish I were an Oscar Mayer wiener" (Oscar Mayer) o 7: "Double your pleasure, double your fun" (Wrigley's Doublemint gum) o 8: "Winston tastes good like a cigarette should" (Winston) o 9: "It's the real thing" (Coca-Cola)
attitudes and behavior measured in close temporal proximity
o Attitude change over time (politics=initially no, but then yes when event comes closer) o Attitudes towards birth control Birth control big attitude no correlation between actions Pills=correlate better Say what attitude toward using birth control pills (get closer/more specific to thing trying to measure=higher correlation) • Get very specific=get .6 correlation attitude toward using birth control pills during next 2 years • Part variation that decrease correlation because situational factors (too expensive/symptoms/baby)
placebo effects
o Beliefs and expectations evoked by marketing actions, such as price changes and advertising claims, can give rise to behavioral (placebo) effects that alter the actual efficacy of products. o Marketers can take this knowledge and use it to improve the real experiences of consumers by creating an environment of positive expectations. How? Visually appealing packaging (e.g., an aesthetically designed box). Helping customers who love your brand share their satisfaction through social channels like web forums or Twitter. B2B: Hinting to a sales prospect that your company was awarded for great customer satisfaction.
Many times the decision process proceeds in two stages
o Consideration set (noncompensatory methods) to reduced consideration set (compensatory method) to choice
consumers behavior invlves emotions and coping
o Consumer researchs studied powerful role that emotions play in consumer behavior o Positive and negative emotions, specific emotions like hope, and general moods can affect how consumers think, the choice they make, how they feel after making a decision, what they remember, and how much they enjoy the experience o Emotions describe how we feel about certain brands or possessions o Consumers often use products to regulate their feelings Ice cream=pick me up o Service employees emotions can affect concumers emotions outside of awareness o Low level emotions can be very important in low effort situations o Issues related to consumer behavior can involve stress, consumers often need to cope in some way How cope with diffivult and overwhelming array of goods from which to choose, how consumers use goods to ocpe with stressful events, and how they cope with losing possessions due to divorce, natural disasters, moving to a residential care facility o Coping behavior of certain market segments who often find it challenging to understand the marketplace without being able to read
rule #1 loss/gain framining
o Consumers sometimes prefer risky options over non-risky options and vice versa Risk-Seeking: When the choices are perceived as losses (e.g., deaths) Risk-Averse: When the choices are perceived as gains (e.g., lives saved)
what factors influence consumer purchase decisions
o Context Effects: The influence of the context in which the decision takes place o Context n: the set of circumstances or facts that surround a particular event, situation, etc.
improtant things to remember for decision rules
o Different rules can lead to vastly different decisions. o Consumers use a combination of decision models - rarely if ever just one! o Consumers do not always have complete information across all options. o Consumers tend to use beliefs (subjective!!!) about attributes and their importance. o Don't always have all the information to compare o Can use subjective beliefs about attributes and their importance
• Rule 2: losses loom larger than gains
o People tend to be more sensitive to losses than to gains The loss of $10 is more significant than a gain of $10 o We go out of our way to use theater tickets that are more expensive, regardless of the show Sunk Cost Effect: Want to avoid calling it a loss o Coke wants to charge different prices in the summer compared to winter. Should they charge $1.50 in the summer and give a $.25 discount in the winter $1.25 in the winter and charge $.25 "refrigeration surcharge" in the summer Gain Framing: Same situation framed as gain is more favorable
base rate fallacy
o Prior probability is ignored when making a judgment o Place too little (or no) weight on the base (original) rate of possibility (e.g., the probability of A, given B). Generally stems from people's tendency to judge likelihood of a situation by not taking into account all relevant data and focusing more heavily on new information without acknowledging how the new information impacts the original assumption. o Base rate neglect=when look at base rate and don't take into account third variables like population levels=hard to understand sometimes o Prior probability ignored o High number of being stolen, but also high number being sold o Less likelihood of illegal immigrants committing crime but news stories=make it look like a lot
prospect theory guidelines
o Segregate gains, integrate losses to reduce psych costs, better to not have any loss, silver lining of small gain helps reduce psych issues losses loom larger than gains (own it=loss, those who dont own it=gain)
fun theory
o Short run thing o Piano stairs/sound in trash can o Teach people positive habit by being fun =can reframe thinking If forever=can lead to annoyance Once a month=scarcity heuristic o Fun is better o Square is now diamond cereal
availability heuristic in action
o You are feeling guilty about homelessness. Your friend tells you that the primary problem underlying homelessness is that the mentally ill do not have adequate care, and most homeless are mentally ill. o You give money to a foundation for mental illness instead of a homeless shelter. o You are trying to decide which warranty to buy, one for your dishwasher or one for your vacuum cleaner. o Your friend's dishwasher recently broke and put huge suds all over the kitchen floor. o You decide to buy the warranty for your dishwasher.
coupons redeemed when
procrastinate in redeeming coupons but move more quickly when deadlines closer because they don't want to regret missing out
out group homogeneity bias
o You feel people in the out-group are more like each other than they themselves feel they are. People in an out-group are all alike People in your in-group are all different Sometimes perceptual and little can be done to correct o Marketing Example: You are a man making an ad meant to appeal to women. You put fluffy pillows, kittens, and cleaning products in the ad. You are a woman making an ad meant to appeal to men. You put a basketball player, pit bulls, and cars in the ad. Stereotypes
who is more accessible to unplanned buying
o Young, unmarried adults with higher incomes do 45% more unplanned buying. o Households with larger families do 31% to 65% less spontaneous purchasing. o "Fast and efficient" shoppers do 82% less unplanned buying than the average. o If the trip purpose is "immediate needs" unplanned buying is 53% less. o Unplanned purchasing goes up by 23% if the shopping trip itself is unplanned o If the trip includes stops at multiple stores, there is 9% less unplanned buying at the second or third store. o Unplanned purchasing goes up by 44% if the shopper goes to the store by car instead of on foot.
quantitative exploratory research
observation
qualitative research
observations, subjective, smaller groups used, observations limited because you want to go in depth, interviews
innovation to
obtain a sustained competitive advantage, to meet consumers needs, to exceed consumers expectations hopefully in positive way to delight
ongoing search
occurs regularly regardless of whether the consumer is making a choice; occurs even when problem recognition has not been activated, consumer might consistently read magazines because enduring involvement
peripheral route persuasion
occurs when people are influenced by incidental cues, such as a speaker's attractiveness
indirect comparative message
offering is compared with those of unnamed competitors; improve consumers perceptions of a moderate share bran relative to other brands
dynamically continuous innovation
often involves new technology, has pronounced effect on consumption practices, film to digital camera, no changing behavior too much
loss aversion status quo bias
opt in vs opt out
extremeness aversion
options that are extreme on some attributes are less attractive than those with a moderate level of those attributes
or move actual downward
organic campagin, what doing before wasnt good enough=solution to sovle it
types of consumer researchers
organizations, government, and academics
involuntary attention activates
orientation reflex by creating stimuli that stands out from surrounding context, senses
change beliefs example
other white meat
outgroup homogeneity bias
out group is all alike; people in group=different (stereotyping out group)
attitude
overall evaluation judgement; judged on effort, direction, learned and enduring but can be modified, guide out thoughts, feelings, and behavior
attitude reflects
overall evaluation of something based on the set of associations linked to it
attitude
overall evaluation that expresses how much we like or dislike an object, issue, person, or action; learned and persistent over time
innovation examples
packaging (more attractive,different flavors, more convenient, cheaper), types, new lines of products
consumer are ___ in low effort situations
passive recipients of message and usually do not form strong beliefs or accessible, persistent, resistant, or confident attributes (attitudes may not be stored in memory=form attitudes anew each time they exposed to message)
mere presence effect
people do not even have to say anything to influence our behavior
compensatory consumption
people feel low class/powerless, buying products or services to offset frustration or difficulties in life; porsche when live in dump, low power consumers willing to pay more when products were status related, get control back for a moment
risk can be good if
people involved, people feel osmething is at riak=more motivated to process info about decision, spend more time on decision, bad if specific brand is at risk (brand risky) but other brands are not (afraid to buy your brand)
lifestyle
people patterns of behavior (highly related to values and personality); end up defining people
consumers socialized through
people socializing agents (family or marketplace)
normative influence: conformity/compliance
people tend to follow society's expectations regarding how to look/act; sex role/clothin, more likely to conform in public than in private
egocentric bias
people think like us, cant imagine how the other side is seeing the same situation differently; implications= new product introduction=if try to start with ourselves we do not represent the target market and creating ads that appeal to you does not guarantee they appeal to target market
market maven
people who are actively involved in transmitting marketplace information of all types; experts=influencers; actively involved in transmitting marketplace information of all types (stay ontop of popularity in marketplace, solid overall knowledge of how and where to procure products), specific knowledge
ability to recycle
people who know how to recycle are more likely to do so=incorrect disposal and less recycling and possess general knowledge of the positive environmental effects of recycling
knowledge
perceive it and be able to name it categorizatio
the source
perceived attractiveness important characteristic; attractive sources tend to evoke favorable attitudes if sources appropraite for offering category
problem recognition
perceived difference between actual and ideal state (motivates consumer to action)
motivation level of
perceived personal importance and or interest evoked by stimulus, personally relevant or related to self concept=involvement, drives being involved in something
rogers five factors
perceived relative advantage, compatibility, complexity, ease of trialability, observability
choice tactic
performance related tactic, habit, brand loyalty, price tactic, normative tactic, affect tactic, brand familiarity, variety seeking, and impulse buying
cognitive based decision making
performance related tactics, habit, brand loyalty, price related tactics, and normative influences
level of motivation in car example
period of buying car=highly motivated, after make decision brain deletes everything (situational involvement) vs enduring involvement (car enthusiast)
low elaboration (low thought)
peripheral route, requires little thought, rely on judgemental heuristics, use surface features of message of its source
long term memory
permanently stored knowledge, autobiographic episodic memory (memory for myself), semantic memory (general knowledge of world), implicit (skills), large storage
reference groups
person a group of people that significantly influences an individual's behavior
decider
person who actually determines what will be chosen
buyer
person who physically acquires product
MAO
personal relevance of message (motivation), relevant knowledge (ability), and cognitive resources (opportuntiy)
economics of information
perspective in which advertising is an important source of consumer information emphasizing the economic cost of the time spent searching for products; get full information and then optimize their decision, gather as much data as needed to make informed decision (most valuable=first, continue to search until cost > utility), search as long search costs<benefits
communication sources evokes favorable affective reactions
physical attractiveness and its likeability
attractiveness
physical features, sources (similar, likable, or familiar)
physical detachment
physically disposing of an item
primary needs
physiological and safety
attribute balancing
picking a brand because it scores equally well on certain attributes rather than faring unequally on these attributes
message characteristics includes
pleassant pictures, music, humor, sex, emotional content, and context
prototypes are main
point of comparison used by consumers to categorize new product
central route processes
processes are those that require a great deal of thought, and therefore are likely to predominate under conditions that promote high elaboration. When using the central route, consumers form their overall positive or negative opinions about the object of the message by focusing and elaborating on the most important, diagnostic information provided. The central route is characterized by active, conscious thought about important; outcome based on persusasiveness of argument
encoding of evidence
processing the information one experiences
influencing exposure
position within medium: back cover is most prominent place, 1st commercial best, product placement=guard down, within store end of aisle or color/cheaper/bigger=catch eye, want to be at eye level or lower for kids
goals
positive (approach), avoidance=negative, multiple goals can create conflict
influencing affectively based attitudes
positive affect=appeals that elicit low/wanting/joy negative affect=elicit fear/anxiety by stressing negative consequences
music can evoke
positive affective response depending on music structure and the style of music used and the product meanings it conveys=vary across cultures
appraoch-avoidance conflict
positive and engative aspect in single product, dessert=indulgence or delicious
direct actions
positive attitudes to approach or negative to avoid
post decision feeling
positive or negative emotion experienced while using the products or services
decisions that emphasize short term interests may have
positive or negative implications for the future (financial situation)
prospect theory
positive s curve, 0=reference point, actual value vs psychological value
conditioned stimulus
precedes the unconditioned stimulus (forward conditioning), conditioning weaker than UCS (backward conditioning), or at the same time of conditioned stimulus (concurrent conditioning)
Big 5 Personality Traits usage
predict behavior and where data mining useful=can predict personality type and personalize marketing
mere exposure effect
prefer familiar objects to unfamiliar ones. attitude toward offering should change as we become more familiar with it; explain why many of the top 30 brands from the 30s is still in top 30 today
external search types
prepurchase and ongoing search
social surroundings
presence of other shoppers in aisle, influencd by attitudes of others, mere presence effect
one sided messages
present only the positive attributes of the product
two sided messages
presenting both good and bad points; more credible and reducing counterarguments
situational factors
prevent a behavior from being performed and weaken attitude behavior relationship (not being able to afford it)
anxiety
prevention focusm preference for low risk/low reward options, prevention focus
consumers more responsive to
price decreases than increases
data collection and analysis types
primary and secondary
what makes things easier to recall in internal search
primcy and recency, protytopicality, goods and usage situations (do they match), accessibility (link strength), diagnosticity (negative>positive), brand loyalty, vividness/salience, retrieval cues
conjunctive bias
probability of two combination phrases=more likely than 1 attribute along, pick combination over just one stand along attribute, activist and bank teller picked rather than or
new belief example
probiotics in yogurt
four stages of decision making
problem recognition, information information search, decision making, and postpurchase evaluation
decision making process
problem recognition, information search, evaluation of alternatives, product choice, outcomes
acquiring
process by which a computer comes to own an offering; involves decisions about time and money; whether to buy, what/when/where to buy, how to pay
ability
process information/act on motivations depends on person specific factors: itnelligence./education/age/money...
graded structure/prototypes
some categories represent category better than others, prototype is the category member perceived to be the best example of the category, extent to which category members are considered to be representative of the category; this perception is based on shared associations (shares most associations within category and fewest in different categories), frequency this is encountered by category member, first or pioneer brand
exposure to product
some chance of being in contact with message, marketers need to select the correct media for target market; consumers can choose not to be exposed to some marketing messages=not paying attention
involuntary attention
something grabbing out attention as a reflex, consumer exposed to something surprising
salience
something stands out from larger context (bright, big, complex, moving, prominent), get to think about it=now short term memory
innovators
sophisticated, change leading, active, take charge
classical conditioning works with
sounds and pictures, music=feeling, conditioned response of good feeling, works for physiological and affective responses not complex ones; babies and puppies=good feeling
central route cognitive and affective
source C: credible, fit with product, selective Source A: attractive but fit with product message C: strong arguments, two sided, comparative message A: arousal but fit with product, fear
five key aspects of external search process
source information, extent of external search, content, search typologies, and the process or order of search
individuals and cultures differ in relative improtance placed on
specific values
personality is person
specific, we are who we are, not change over time
single person household
spend more on rent, alcohol, reading materials, health care, and tabacco
when product or service does not fulfill consumers needs they will attempt to find an explanation based on three factors:
stability, controllability, focus
parody display
status symbols that start in the lower-social classes and move upward
personal needs level
status, respect
retrieval cues
stimuli facilitates a node activation of memory, brand name or symbol=cue, changing brand=run risk of not recognizing it
attitude confidence
strength of attitude (situational)
interference definition
strength of memory deteriorates over time because of the presence of other memories that compete with it
ambivalence
strong positive evaluations of one aspect of a brand and strong negative evaluation of other aspects (someone's opinion will tend to influence us more when our attitudes ambivalent, even when we do not see that person as knowledgeable)
webers law
stronger initial stimulus the greater the additional intensity needed for second stimulus to be perceived as different
limited spreading
stronger links will be activted first and be more likely to activate; explains random thought; reason for false recall
below JND
subtle changes, downsizing, pricing increze, gradual changes
achievers
successful, career and family oriented, moderate
ahcievers
successful, career and family oriented, moderate
levels of taxonomic categories
superordinate, basic level, suborbinate, category members/prototypes (least to most)
satisfaction
the feeling that results when consumers make a positive evaluation or feel happy with their decision • Things salient and big=take space in our mind o Car crashes more common, but plane crashes more space in our mind because terrible events o When give people required number=make people think more bad things • However if they cant find 5 things in your memory=if cant come up with 3rd out of 5=rate this higher because must be good • If give blank space=list things you did right today=odds are cant list 5 things so if they don't come to mind easily=must not have been good service • If something feels difficult to come up with=tend to infer that this is less influential or less important
decision framing
the initial reference point or anchor in the decision process
optimal stimulation level
the level of arousal that is most comfortable for an individual
brand-choice congruence
the likelihood that consumers will buy what others in their group buy
performance
the measurement of whether the product/service actually fulfills consumers' needs
just noticeable difference
the minimal change in a stimulus that can just barely be detected
absolute threshold
the minimum stimulation needed to detect a particular stimulus 50 percent of the time
earlier in life consumer encounter a brand
the more quickly they recognize it, perceptual fluency is high
homophily
the overall similarity among members in the social system
diffusion
the percentage of population that has adopted an innovation at a specific point in time; cumulative adoption; riskier=takes a while to take off
fairness in the exchange
the perception that people's inputs are equal to their outputs in an exchange
consumer memory
the persistence of learning over time, via the storage and retrieval of information, either consciously or unconsciously
self esteem
the positivity of a person's self-concept; low self esteem=low expectations, avoid embarrassment, failure/rejection; high self esteem=high expectations, more risk taking, willing to be center of attention
customer retention
the practice of keeping customers by building long term relationships
disposition
the process by which a consumer discards an offering
using
the process by which a consumer uses an offering; core of consumer behavior; who/how/how much/how happy (functional vs symbolic)
affective decision making model
the process by which consumers base their decision on feelings and emotions
cognitive decision making model
the process by which consumers combine items of information about attributes to reach a decision
segmentation
the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics
retrieval
the process of getting information out of memory storage
noncomparable decision
the process of making a decision about products or services from different categories
consumer socialization
the process through which a person acquires the knowledge and skills to function as a consumer
fundamental attribution error
the tendency for observers, when analyzing another's behavior, to underestimate the impact of the situation and to overestimate the impact of personal disposition
conformity
the tendency to do what others do simply because others are doing it
serial positon effect
the tendency to recall the items at the beginning and end of a list more readily than those in the middle
instrumental values
the values needed to achieve the desired end states such as ambition and cheerfulness
actual state
the way things actually are
ideal state
the way we want thing to be
lifestyle dimensions: opinions
themselves, social issues, politics, business, economics, education, future, culture
if fail to process info or fail to rehearse
then wont make it into next section of memory
why care about difference between mood and emotion
they grab and maintain attention, empathy; emotionally invested in grandpa, guilt starts to set in, commercial toys with emotions
when marketers make decisions
they may focus on me (professional or personal goals)
if top dog is unambiguous
they simply need to reinforce of messages telling why the brand is satisfactory=explain the experience and encouragement to try it
inept set
things I don't want to buy
consideration set
things I might actually buy (not here=cant be chosen)
echoic
things we hear
conspicious waste
visibly buying products and services that one never uses
early adopters
visionaries who are less concerned about price and more concerned with efficiency; don't want to wait for new technology; leaders in social setting/sligtly above average education
reduce interference
visual and textual cues that reinforce each other
pleasant pictures
visual stimuli
paradox of choice
want more choices, but requires more effort/information overload/defer choice
functional innovaiton
want to make things easier (roomba, single servce cups)
leisure heuristic
wasteful; shouldn't be wasting time on leisure; work=productive; how not to lose productivity when on vacation; leisure time they enjoy it less=more stress and depression
social identity based attitude
way see social identities can play role
Gestalt Principles
ways for the brain to infer missing parts of a picture when a picture is incomplete
opinion seekers
we are most likely seek from someone who knows a lot about a product
any attribute can be taken to extremes thus
we need to appreciate differences
subliminal
weak evidence, absence of research, can increase creativity=priming apple logo
culture and ethnicity
western and eastern, Hispanics more emphasis on family, Chinese emphasizes extended family, Korean/Japanese more immediate family
consumer behavior helps marketers determine
what customers need, how they behave, what they think, and how they feel
ethics
what is right vs wrong
value expressive/identification
what we wish to do, wish to identify with group/person/hero
compromise effect
when a brand gains share because it is an intermediate rather than an extreme option
unplanned buying
when a shopper buys merchandise she did not intend to purchase, often because she recognizes a new need while in the store; 60-70% purchases unplanned (point of sale is crucial once customers is in the store)
unity
when all the visual parts of a design fit together
when are attitudes good predictors of behavior
when constrains on behvior (stituational or normative), when highly accessible (more strongly held), behavior is deliberate (spur of moment decision=stray), specific attitudes not general attitudes
explicit memory definition
when consumers are consciously aware that they remember something, consumers remember that they visited particular website and what they ordered from site
low effort situation
when consumers are either unwilling or unable to exert a lot of effort or devote emotional resources to processing the central idea behind a marketing communication
when 2 sided arguments effective
when consumers are initially opposed to the offering (have negative beliefs) or when they will be exposed to strong countermessages from competitors
truth effect
when consumers believe a statement simply because it has been repeated a number of times
emotional appeals most effective
when emotional arousal related to product consumption or usage
more SA
when in postive mood=maintain good mood
More CA and SD w
when messages disagree with prior beliefs, when argument in message is weak
complaining is more likely
when motivation, ability, and opportunity is high
endowment effect
when ownership increases the value of an item
attraction effect
when the addition of an inferior brand to a consideration set increases the attractiveness of the dominant brand; disappears if the options are undesirable
more support arguments and fewer counterarguments
when they are involved with TV program in which commercial appears; more persusasive
bias happens
when we overapply a heuristic
postdecision evaluations
whether decision was correct and whether to purchase again
valence
whether information about something is good (positive valence) or bad (negative valence)
loss aversion
• People tend to be more sensitive to losses than to gains o Wants to charge different prices in the summar compared to winter o Discount=something you get=gain frame .25 cent gain=more likely to go along with decision o More aversive to the .25 if associated with loss
marketing managers
• Study consumer behavior provides critical information to managers for developing marketing strategies and tactics • Marketing=activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large • Understand what consumers and clients value o Develop, communicate, and deliver appropriate goods and services
how we percieve
• What we see depends on what we expect to see, what we hear depends on what we expect to hear... • We expect to see context and depth (brain autocorrects) • We expect to what fits with our stereotypes (easier to fit these stereotypes) • Perceptual expectations can lead to illusions - don't believe everything you see/hear • Illusions can be used to great effect in packaging
