Consumer Behavior Exam#2

guerrilla marketing

Guerrilla marketing is an innovative, unconventional, and low-cost marketing techniques aimed at obtaining maximum exposure for a product. class: low cost, innovative -> street artist make ad on ground

highlighting effect

Highlighting effect, which occurs when the order in which consumers learn about brands determines the strength of association between these brands and their attributes.

decay

In a process of decay, the structural changes that learning produces in the brain simply go away.

factors leading to adaptation

Intensity Discrimination Exposure Relevance

market access

Market access relates to the ability to find and purchase goods and services.

how do marketers get attention?

Personal Selection Factors: Experience Perceptual filters (Perceptual vigilance, Perceptual defense)

semiotics

Semiotics, a discipline that studies the correspondence between signs and symbols and their roles in how we assign meanings.

sensory overload

Sensory overload means consumers are exposed to far more information than they can process. Much of this comes from commercial sources. We are exposed to thousands of advertising messages each day in addition to the other types of stimuli we sense.

Stage 1: Key concepts in exposure

Sensory threshold Absolute threshold (dog whistle) Differential threshold JND (Just Noticeable Difference) Weber's Law class: billboard-> large text, pictures

stimulus discrimination

Stimulus discrimination occurs when a UCS does not follow a stimulus similar to a CS. When this happens, reactions weaken and will soon disappear.

stimulus generalization

Stimulus generalization refers to the tendency of stimuli similar to a CS to evoke similar, conditioned responses. For example, Pavlov noticed in subsequent studies that his dogs would sometimes salivate when they heard noises that only vaguely resembled a bell, such as keys jangling.

sustainability

The ability to keep in existence or maintain. A sustainable ecosystem is one that can be maintained

differential threshold

The differential threshold refers to the ability of a sensory system to detect changes in or differences between two stimuli.

JND (just noticeable difference)

The minimum difference we can detect between two stimuli.

The Von Restorff Effect

The von Restorff Effect is well-known to memory researchers; it shows that almost any technique that increases the novelty of a stimulus also improves recall.

trade dress (vision)

Trade dress is when some color combinations come to be so strongly associated with a corporation. Example - the blue box/bag from Tiffany's class: Christian Louis Vouton -> red soles

knowledge structure

Within a knowledge structure, we code elements at different levels of abstraction and complexity.

conscientious consumerism

a new value that combines a focus on personal health with a concern for global health

Location Privacy

a person's ability to move normally in public spaces with the expectation that his or her location will not be recorded for subsequent use related to consumers that have GPS on their cell phones. class: school in Brazil, sewed in GPS tracker on school clothes -> if kid wasn't in class it would notify parents.

consumer addiction

a physiological or psychological dependency on products or services

LOHAS

an acronym for "lifestyles of health and sustainability." This label refers to people who worry about the environment, want products to be produced in a sustainable way, and spend money to advance what they see as their personal development and potential.

learned associations

class: U.S.-> black = death (ex. wear at funerals) Japan-> white = death (wear at funerals)

Research has shown that when consumers ________ a product, they then have a higher level of attachment to the product. Touch can even influence sales interactions.

touch

forgetting

-decay -interference -state-dependent retrieval -highlighting effect -salience -von restorff effect (mixed and unipolar emotions -hybrid ads

LOHAS Market Sectors (life style of health and sustainability)

-personal health ($117 billion; natural, organic product, nutritional products, integrative health care, dietary supplements, mind body spirit products) -green building ($100 billion; home certification, energy star spplications, sustainable flooring, renewable energy systems, wood alternatives) -eco-tourism ($42 billion; eco-tourism travel, eco-adventure travel) -natural lifestyles ($10 billion; indoor & outdoor furnishings, organic cleaning supplies, compact fluorescent lights, social change philanthropy, apparel) -alternative transportation ($20 billion; hybrid vehicles, biodiesel fuel, car sharing programs) -alternative energy ($1 billion; renewable energy credits, green pricing)

retrieving memories

-pioneering brand -follower brands -spacing effect class: 1st tends to be the one we remember the most -> you can remember your 1st phone (flip phone)

levels of knowledge

-schema -script -service scripts class: go to a restaurant -> you know you have to wait to be seated-> then you get menu...... you've been through the process, you use it in other settings

3 stages of memory

1 In the encoding stage, information enters in a way the system will recognize. 2 In the storage stage, we integrate this knowledge with what is already in memory and "warehouse" it until it is needed. 3 During retrieval, we access the desired information

cognitive development

1 Limited—Children who are younger than age 6 do not employ storage-and-retrieval strategies. 2 Cued—Children between the ages of 6 and 12 employ these strategies but only when prompted to do so. 3 Strategic—Children 12 and older spontaneously employ storage-and-retrieval strategies.

Perception is a three-stage process that translates raw stimuli into meaning -> what are the stages?

1. exposure 2. attention 3. interpretation

incidental learning

2 We learn even when we don't try: We recognize many brand names and hum many product jingles, for example, even for products we don't person- ally use. We call this casual, unintentional acquisition of knowledge incidental learning. class: looking on web for info abt GMAT -> schools know you're interested in attending grad school.

spreading activation

A marketing message may activate our memory of a brand directly or indirectly. If it activates a node, it will also activate other linked nodes much as tapping a spider's web in one spot sends movement reverberating across the web. The process of spreading activation allows us to shift back and forth among levels of meaning. The way we store a piece of information in memory depends on the type of meaning we initially assign to it. This meaning type then determines how and when something activates the meaning. The meaning types are listed in the slide. Brand-specific meaning refers to memory stored in terms of the claims the brand makes. Ad-specific meaning refers to memories stored in terms of the medium or content of the ad itself. Brand identification is memory stored in terms of the brand name. Product category meaning is memory stored in terms of how the product works or where it should be used. Evaluative reactions is memory stored as positive or negative emotions.

narrative

A narrative, or a description of a product that is written as a story, is often an effective way to convey product information class: was told north american flag colors (red white blue (usa), red green white (mex), red white (can)) vs just a sequence of colors --> easier to remember flag colors

schema

A schema is a cognitive framework we develop through experience.

types of memory

According to the information-processing perspective, there are three distinct memory systems: 1. sensory memory 2. short-term memory 3. long-term memory. Each plays a role in processing brand-related information, as summarized in the figure. 1- Sensory memory stores the information we receive from our senses. This storage is temporary. If the information is retained for further processing, it passes through an attentional gate and transfers to --> 2- short-term memory. Short-term memory also stores information for a limited period of time, and it has limited capacity. This system is working memory. It holds information we are currently processing. Our memories can store verbal input acoustically or semantically. We store this information by combining small pieces into larger ones in a process we call chunking. A chunk is a configuration that is familiar and the person can think about it as a unit. 3- Long-term memory is the system that allows us to retain information for a long period of time. A cognitive process we call elaborative rehearsal allows information to move from short-term memory to long-term memory.

activation models of memory

Activation models of memory explain that depending on the nature of the processing task different levels of processing occur that activate some aspects of memory rather than others.

ad-specific

Ad-specific meaning refers to memories stored in terms of the medium or content of the ad itself.

adaption

Adaptation is the degree to which consumers continue to notice a stimulus over time. The process of adaptation occurs when consumers no longer pay attention to a stimulus because it is so familiar. A consumer can "habituate" and require increasingly stronger "doses" of a stimulus to notice it. Several factors can lead to adaptation. Less intense stimuli have less sensory impact. Stimuli that require relatively lengthy exposure in order to be processed habituate because they require a long attention span. Simple stimuli habituate because they do not require attention to detail. Frequently encountered stimuli habituate as the rate of exposure increases. Stimuli that are irrelevant or unimportant habituate because they fail to attract attention.

Phishing

An attack that sends an email or displays a Web announcement that falsely claims to be from a legitimate enterprise in an attempt to trick the user into surrendering private information class: email/tool trying to get personal info to use for identity theft

anticonsumption

Anticonsumption relates to events in which people deliberately deface or mutilate products and services.

Stage 2: Attention

Attention is the extent to which processing activity is devoted to a particular stimulus. Consumers experience sensory overload. Marketers need to break through the clutter. class: average consumer is exposed to 3,500 ads a day (30 yrs ago: 560 ads per day) -> tech is a big reason for change & marketers have to keep competing for our generations attention.

behavioral learning

Behavioral learning theories focus on stimulus-response connections

brand equity

Brand equity, in which a brand has strong positive associations in a consumer's memory and commands a lot of loyalty as a result.

brand identification

Brand identification is memory stored in terms of the brand name. class: regular disinfectant wipe --> we may call it a Clorox wipe when it really isn't.. other brands we do this with are Band-Aid, Klenex, Coffee Mate, Lysol if you're a non-brand wipe you want to be placed next to Clorox wipe->be where the consumers eyes go (towards brand)

brand specific

Brand-specific meaning refers to memory stored in terms of the claims the brand makes. class: Bounty: "The quicker picker upper" --> make claims, tend to remember better

classical conditioning (Pavlov)(definition)

Classical conditioning: a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. Over time, the second stimulus causes a similar response because we associate it with the first stimulus. Ivan Pavlov, a Russian physiologist who conducted research on digestion in animals, first demonstrated this phenomenon in dogs. He paired a neutral stimulus (a bell) with a stimulus known to cause a salivation response in dogs. The powder was an unconditioned stimulus (UCS) because it was naturally capable of causing the response. Over time, the bell became a conditioned stimulus (CS). The bell did not initially cause salivation but the dogs learned to associate the bell with the meat powder and began to salivate at the sound of the bell only. The drooling of these canine consumers because of a sound was a conditioned response (CR). class: US: dog food CS: bell CR: dog food + bell

People store these observations in memory as they accumulate knowledge and then they use this information at a later point to guide their own behavior. Modeling is the process of imitating the behavior of others. In the figure illustrated, you can see that for a marketer to instigate observational learning, four conditions must be met. First, the consumer's attention must be directed to the appropriate model and that person must be someone the consumer wishes to emulate. Second, the consumer must remember what the model says or does. Third, the consumer must convert this information into actions. Fourth, the consumer must be motivated to perform these actions. class: attention --> retention --> production processes --> motivation --> observational learning

Cognitive Learning Theory

cognitive theories

Cognitive theories focus on consumers as problem solvers who learn when they observe relationships

color forecasts (vision)

Color forecasts are colors that manufacturers and retailers buy so they can be sure they stock up on the next hot hue. For example, Pantone, Inc. (one of these color arbiters) identified "Classic Blue"——as the color of the year for 2020. class: millennium pink -> shown to women twice as much as any other color.

classical conditioning components of conditioning conditioning issues

Components of Conditioning: Unconditioned stimulus, Conditioned stimulus, Conditioned response, Conditioning Issues: Repetition, Stimulus generalization, Stimulus discrimination, Extinction

Repetition

Conditioning effects are more likely to occur after the conditioned (CS) and unconditioned (UCS) stimuli have been paired a number of times.

stimulus discrimination

Conditions may also weaken over time especially when a UCS does not follow a stimulus similar to a CS.

consumed consumers

Consumed consumers are people who are used or exploited, willingly or not, for commercial gain in the marketplace. Examples - prostitutes, selling babies, blood, organ and hair donors, surrogate mothers being paid to carry other people's children. Consumed consumers may even become products themselves.

haptic

Consumer researchers are studying the role that haptic sense (touch) plays in consumer behavior. Basically, we are more sure about what we perceive if we can touch it. We have a tendency to want to touch objects. The philosophy of computer design related to touch is known as natural user interface and it incorporates habitual human movements that we don't have to learn.

Cyberterrorism

Consumers may suffer from attacks from others the politically motivated use of computers and information technology to cause severe disruption or widespread fear in society. class: Russian involvement in elections

stimulus selection factors

Contrast Size Color Position Novelty In addition to the receiver's mindset, characteristics of the stimulus itself play an important role in determining what we notice and what we ignore. Marketers need to understand these factors so they can create messages and packages that will have a better chance of cutting through the clutter. Several characteristics can aid in enhancing the chances of a stimulus for being noticed including size, color, position, and novelty. class: ads on right side of mag seen more often...2nd page, right hand side is #1 spot in magazine if you want your ad to be seen put it in unexpected places

counterfeiting

Counterfeiting is when companies or individuals sell fake versions of real products to customers. class: medication ike valume, oxycotin, percasets, anything addictive (fake pharm)

cyberbullying

Cyberbullying refers to the "willful and repeated harm inflicted through the use of computer, cell phones, and other electronic devices.

(Market access) Disabilities

Disabled people are the largest minority market in the United States. One in 5 U.S. adults lives with a disability that interferes with daily life. class: -Target does well w ppl w disabilities -> dev a whole line for kids in wheelchairs; Halloween costumes. -Arie accomodates those w dis.

episodic memories

Episodic memories relate to events that are personally relevant class: song tied to first kiss (you can find these mems more easily)

evaluative reactions

Evaluative reactions is memory stored as positive or negative emotions.

experience

Experience is the result of acquiring and processing stimulation over time. It helps to determine how much exposure to a particular stimulus a person accepts.

exposure

Exposure occurs when a stimulus comes within the range of someone's sensory receptors.

The Pepsi logo over time

Exposure occurs when a stimulus comes within the range of someone's sensory receptors. Consumers concentrate on some stimuli, but are unaware of others. There are some stimuli we simply cannot perceive. Psychophysics is the science that explains how the physical environment is integrated into our personal, subjective world. When we define the lowest intensity of a stimulus that our brains can register we are speaking of its threshold. The images in the slide illustrate how Pepsi has changed its logo over the years. If the difference didn't pass our sensory threshold, we wouldn't notice the logo had changed.

The Golden Triangle

Eye-tracking studies reveal that people typically spend most of their time on a website looking at the "golden triangle" outlined by yellow, orange and red. The Golden Triangle illustrates how our eyes view web sites. class: where Google ads are if you search something.

follower brands

Follower brands that ride their coattails (the pioneer brands) because the first product's introduction is likely to be distinctive, and for the time being, no competitors divert our attention.

(Market Access) Food Deserts

Food desert is a Census tract where 33 percent of the population or 500 people, whichever is less, live more than a mile from a grocery store in an urban area or more than 10 miles away in a rural area.

interference

Forgetting also occurs as a result of interference; as we learn additional information, it displaces the previous information.

(Market Access) Functionally Illiterate

Functionally illiterate describes a person whose reading skills are not adequate to carry out everyday tasks, such as reading the newspaper or the instructions on a pill bottle. class: 50% of US population can't read above a 6th grade level -> ads use more images -> McDonalds has pictures of all food on menu & menu orders are in #s: ex. nugget meal is #2 "I would like a #2 please" -> demographics at McD and Apple are v different (dif target market)

green marketing

Green marketing describes a strategy that involves the development and promotion of environmentally friendly products and stressing this attribute when the manufacturer communicates with customers.

greenwashing

Greenwashing occurs when companies make false or exaggerated claims about how environmentally friendly their products are. ->

hybrid ads

Hybrid ads include a program tie-in

Instrumental conditioning (also, operant conditioning)

Instrumental conditioning (also, operant conditioning): the individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes. Instrumental conditioning (or operant conditioning ) occurs when we learn to perform behaviors that produce positive outcomes and avoid those that yield negative outcomes. We associate this learning process with the psychologist B. F. Skinner, who demonstrated the effects of instrumental conditioning by teaching pigeons and other animals to dance and perform other activities when he systematically rewarded them for desired behaviors. Responses to classical conditioning are fairly simple and involuntary, but the responses we make to instrumental conditioning are related to obtaining a goal. We may learn the desired behavior over a period of time as a shaping process rewards our intermediate actions. One way that instrumental conditioning may occur is through positive reinforcement.

how does instrumental conditioning occur?

Instrumental conditioning (or operant conditioning) occurs when we learn to perform behaviors that produce positive outcomes and avoid those that yield negative outcomes. Whereas responses in classical conditioning are involuntary and fairly simple, we make those in instrumental conditioning deliberately to obtain a goal. We may learn the desired behavior over a period of time as a shaping process rewards our intermediate actions. Instrumental conditioning occurs in one of three ways: 1) positive reinforcement, 2) negative reinforcement, and 3) punishment. Positive reinforcement comes in the form of a reward. Negative reinforcement shows how a negative outcome can be avoided. Punishment occurs when unpleasant events follow a response. Extinction occurs when there is no reinforcement. In other words, the conditioning is not activated because it is not reinforced.

Interpretation

Interpretation refers to the meaning we assign to sensory stimuli, which is based on a schema class: background has a lot to do w senses -> ppl of asian culture have better sense of smell (Leo did not help this) food in bags from McDonalds vs on a plate -> from bag tastes better bc of schema we have; have an expectation (hardwire in brain)

learning

Learning is a relatively permanent change in behavior caused by experience. The learner need not have the experience directly, however; we can also learn when we observe events that affect others.

meaning concepts & proposition (belief)

Meaning concepts (like "macho") get stored as individual nodes. We may combine these concepts into a larger unit we call a proposition or a belief. A proposition links two nodes together to form a more complex meaning. For example, "Axe is cologne for macho men" is a proposition.

(Market Access) Media Literacy

Media literacy refers to a consumer's ability to access, analyze, evaluate, and communicate information in a variety of forms, including print and nonprint messages.

multiple intelligence theory

Multiple-intelligence theory. This influential perspective argues for other types of intelligence, such as athletic prowess or musical ability, beyond the traditional math and verbal skills psychologists use to measure IQ.

semiotic relationships

Object Sign Interpretant Icon Index Symbol The object is the product that is the focus of the message (e.g., Marlboro cigarettes). The sign is the sensory image that represents the intended meanings of the object (e.g., the Marlboro cowboy). The interpretant is the meaning we derive from the sign (e.g., rugged, individualistic, American). Figure 3.4 diagrams this relationship. An icon is a sign that resembles the product in some way (e.g., the Ford Mustang has a galloping horse on the hood). An index is a sign that connects to a product because they share some property (e.g., the pine tree on some of Procter & Gamble's Spic and Span cleanser products conveys the shared property of fresh scent). A symbol is a sign that relates to a product by either conventional or agreed-on associations (e.g., the lion in Dreyfus Fund ads provides the conventional association with fearlessness and strength that it carries [or hopes to carry] over to the company's

observational learning

Observational learning occurs when we watch the actions of others and note the reinforcements they receive for their behaviors. In these situations, learning occurs as a result of vicarious rather than direct experience. This type of learning is a complex process; people store these observations in memory as they accumulate knowledge and then they use this information at a later point to guide their own behavior. Particularly when we are preoccupied with other demands, we are likely to mimic others' behaviors as a social default. Modeling (not the runway kind) is the process of imitating the behavior of others

script

One type of schema that is especially relevant to consumer behavior is a script. A script is a sequence of events an individual expects to occur. Script is a sequence of events an individual expects to occur. As consumers we learn service scripts that guide our behavior in commercial settings. class: expect things a certain way/order

parents influence

Parents exhibit different styles when they socialize their children. They may be authoritarian, neglecting, or indulgent. Authoritarian parents are hostile, restrictive, and emotionally uninvolved. Neglecting parents are detached from their children and don't exercise much control over what the children do. Indulgent parents communicate more with their children about consumption-related matters and are less restrictive.

halo effect

People also react to other, similar stimuli in much the same way they responded to the original stimulus; we call this generalization a halo effect. class: YAK from target vs YETI brand --> looks very similar; you're conditioned to believe that they work the same (hot drinks stay hot & cold drinks stay cold)

perceptual filters

Perceptual filters based on our past experiences influence what we decide to process. Perceptual filters include vigilance, defense, and adaptation. In addition to the receiver's mindset, characteristics of the stimulus itself play an important role in determining what we notice and what we ignore. Marketers need to understand these factors so they can create messages and packages that will have a better chance of cutting through the clutter. Several characteristics can aid in enhancing the chances of a stimulus for being noticed including size, color, position, and novelty.

pioneering brand

Pioneering brand is the first brand to enter a market.

product category

Product category meaning is memory stored in terms of how the product works or where it should be used.

scent marketing

Scent Marketing is a form of sensory marketing that we may see in lingerie, detergents, and more. class: players (teams) wearing black seem to be more aggressive (hockey team w black -> highest # of penalty mins) smell activity: candles -> described it as Christmas; it was actually peppermint. smell is the most powerful of all the senses. average person can recognize 10,000 unique smells

serial wardrobers

Serial wardrobers "who buy an outfit, wear it once, and return it"; customers who change price tags on items, then return one item for the higher amount; and shoppers who use fake or old receipts when they return a product. class: buy expensive dress-wear once-return it (happens a lot around Christmas, less questions asked)

shrinkage

Shrinkage is the industry term for inventory and cash losses from shoplifting and employee theft. class: Walmart; theft of goods at store like scanning a cheaper item and taking the expensive at self checkout

kansei engineering

Some Japanese companies take this idea a step farther with their practice of Kansei engineering, a philosophy that translates customers' feelings into design elements.

Weber's Law

Sometimes a marketer may want to ensure that consumers notice a change, as when a retailer offers merchandise at a discount. In other situations, the marketer may want to downplay the fact that it has made a change, such as when a store raises a price or a manufacturer reduces the size of a package. A consumer's ability to detect a difference between two stimuli is relative. A psychophysicist named Ernst Weber found that the amount of change required for the perceiver to notice a change systematically relates to the intensity of the original stimulus. The stronger the initial stimulus, the greater a change must be for us to notice it. This relationship is known as Weber's Law.

sound symbolism

Sound symbolism as a way to influence brand image with sound. Sounds can even influence how we feel about size! Consumers are more likely to recognize brand names that begin with a hard consonant (K or P). Vowel and consonant sounds (or phenomes) can even be associated with perceptions of large and small.

spacing effect

Spacing effect describes the tendency for us to recall printed material more effectively when the advertiser repeats the target item periodically, rather than presenting it repeatedly in a short time period.

5 stages of consumer development

Stage 1: observing stage 2: making requests stage 3: making selections stage 4: making assisted purchases stage 5: making independent purchases The process of consumer socialization begins with infants. Within the first two years, children request products they want. By about age 5, most kids make purchases with the help of parents and grandparents. The figure shows the sequence of stages as kids turn into consumers.

stimulus generalization

Stimuli similar to a CS may evoke similar responses. class: hear a ding from phone, but not exactly the noise you usually hear -> still check phone usually

stimulus generalization

Stimulus generalization: tendency for stimuli similar to a conditioned stimulus to evoke similar, unconditioned responses. Family branding Product line extensions Licensing Look-alike packaging The process of stimulus generalization is critical to branding and packaging decisions that try to capitalize on consumer's positive associations with an existing brand or company name. Marketers can base some strategies on stimulus generalization. Family branding enables products to capitalize on the reputation of a company name. Marketers can use product line extensions by adding related products to an established brand. Licensing allows companies to rent well-known names. class: minions on ego waffle boxes -> makes you happy; reminds you of happy and funny movie. Distinctive packaging designs create strong associations with a particular brand. Companies that make generic or private-level brands and want to communicate a quality image often exploit this linkage when they put their products in similar packages to those of popular brands.

Data breaches at major companies such as Target, Sony and Home Depot continue to worry many people. The federal government is actively engaged with this problem and a variety of legislative proposals are being considered including...

The Personal Data Notification & Protection Act of 2015 & The Student Digital Privacy and Parental Rights Act of 2015

absolute threshold

The absolute threshold refers to the minimum amount of stimulation a person can detect on a given sensory channel. The absolute threshold means that the stimulation used by marketers must be sufficient to register. For instance, highway billboard might have the most entertaining copy ever written, but this genius is wasted if the print is too small for passing motorists to see it.

social default and modeling

The consumer's attention must be directed to the appropriate model. -> The consumer must remember what the model says or does. -> The consumer must convert this information into actions. -> The consumer must be motivated to perform these actions. class: Why do you have Apple products? Is it because you copy friends? family? parents?... usually yes.

types of gamification:

The fast-growing strategy of gamification turns routine actions into experiences as it adds gaming elements to tasks that might otherwise be boring or routine. Endowed progress effect, a carwash gave one set of customers a buy-eight-get-one-free card, while a second set of customers got a 10-wash card that had been punched twice. A dynamic digital environment (whether in-store, on a laptop, or on a tablet or phone) that resembles a sophisticated videogame platform Multiple short- and long-term goals Rapid and frequent feedback A reward for most or all efforts in the form of a badge or a virtual product Friendly competition in a low-risk environment A manageable degree of uncertainty ●● Store and brand loyalty. Foursquare gives people virtual badges when they check in at a local cafe or restaurant. Some of them check in as often as they can to compete for the honor of being named "mayor" of the location. ●● Social marketing. More than 75 utilities use a service from a company called Opower that awards badges to customers when they reduce their energy consumption. Customers can compare their progress with their neighbors' and broadcast their achievements on Facebook. ●● Employee performance. Some restaurants enlist a service called Objective Logistics to rank the performances of waiters on a leaderboard, rewarding the good ones with plum shifts and more lucrative tables.

Perceptual defense

The flip side of perceptual vigilance is perceptual defense. This means that people see what they want to see—and don't see what they don't want to see. If a stimulus is threatening to us in some way, we may not process it, or we may distort its meaning so that it's more acceptable.

associative network

The other products we associate with an individual product influence how we will remember it. Recent research suggests that long-term memory and short-term memory are interdependent systems. --> Depending on the nature of the processing task, different levels of processing occur that activate some aspects of memory rather than others. --> These approaches are called activation models of memory. The more effort it takes to process information, the more likely it is that information will transfer into long-term memory. According to these activation models of memory, an incoming piece of information gets stored in an associative network that contains many bits of information. These storage units are knowledge structures - like a complex spider web filled with pieces of data. Incoming information gets put into nodes that connect to one another. Figure 4.6 shows an associative network for perfumes. class: Matthew McConaughey advertising for Lincoln --> why? ... when you think abt MM you think classy, elegant, famous --> Lincoln wants to portray this image (big shot, movie star)

state-dependent retrieval

The phenomenon of state-dependent retrieval illustrates that we are better able to access information if our internal state is the same at the time of recall as when we learned the information.

salience

The salience of a brand refers to its prominence or level of activation in memory.

psychophysics

The science of psychophysics focuses on how people integrate the physical environment into their personal worlds.

gestalt

The whole is greater than the sum of its parts class: ARGET (red and white logo) -> even w missing T you still know its TARGET

audio watermarking

There are many aspects of sound relevant to marketers. Brands can use audio watermarking to encourage the retention of the message - when producers weave a sound/motif into a piece of music that acts like an earworm we compulsively hum.

types of reinforcement

This figure will help you to "reinforce" the relationships among these four conditions. In addition to deciding whether to use positive reinforcement, negative reinforcement, or punishment, marketers also have to decide on a schedule. Marketers need to determine the most effective reinforcement schedule to use because this decision relates to the amount of effort and resources they must devote when they reward consumers who respond as they hope to their requests. Several schedules are possible: In a fixed interval reinforcement, the first response made brings the reward and then on a specific set interval, future rewards are given. With variable interval reinforcement, one doesn't know when the reward will be offered. Because you don't know exactly when to expect the reinforcement, you have to respond at a consistent rate. In fixed ratio reinforcement, reinforcement only occurs after a fixed number of responses. The last type of reinforcement schedule is the variable-ratio schedule. This is the type of schedule used by slot machines.

perceptual vigilance

Vigilance means consumers are more likely to be aware of stimuli that relate to their current needs. A consumer who rarely notices car ads will become very much aware of them when she or he is in the market for a new car.

5 senses

Vision Scent Sound Touch Taste --> use all to make purchase decision

Mixed and Unipolar emotions

We recall mixed emotions (e.g., those with positive and negative components) differently than unipolar emotions that are either wholly positive or wholly negative.

sensory threshold

What a person is capable of receiving is stimuli within a person's sensory threshold. That threshold is the area within which stimuli can make a conscious impact on the person's awareness.

Triple bottom-line orientation

a Triple bottom-line orientation refers to business strategies that strive to maximize return in three ways: (financial, social, environmental)

Botnets

a set of computers that are penetrated by malicious software known as malware that allows an external agent to control their actions -> they can hijack millions of computers without any trace.

Conditioning effects are more likely to occur after the conditioned stimulus (CS) and the unconditioned stimulus (UCS) have been paired several times. Repeated exposures to the association increase the strength of the associations and prevent decay of these associations in memory. Many classic __________ campaigns consist of product slogans repeated often to enhance recall. The Rolaids campaign which asked, 'How do you spell relief? ROLAIDS' is a personal favorite. But for this to work, the UCS must repeatedly be paired with the CS. Otherwise, extinction occurs. Extinction means that the association is forgotten. Even when associations are established, too much exposure can turn negative. In that case, the association may change in terms of whether it is perceived as positive or negative. That's what happened to Izod when its logo became too exposed on a variety of clothing and products.

advertising

Real time bidding

an electronic trading system that sells ad space on the web pages people click on at the moment they visit them class: digital fingerprints; maybe professor looked up meals for kids so Instagram finds ads to match what you were looking up -> co. will bid for this info; IG sells ad space to co. who will pay highest for personal ad.

more exposure = increased _________ ______________.

brand awareness

similarity

consumers group together objects that share similar physical characteristics

Some of the issues facing consumers include...

data privacy, identity theft, market access, sustainability

Some studies suggest that as we age, our sensory detection abilities __________.

decline

social media addiction

dependency on interaction with social networking platforms to the extent that signs of withdrawal appear if the person is unable to connect compared to chemical dependency.

when exposure decreases _____________ occurs

extinction However, too Much exposure leads to advertising wear out Example: Izod crocodile on clothes class: important for advertisers bc ppl keep needing to see the same ad to remember it.

consumer behavior can be ____________ to individuals and to society

harmful

Marketers rely heavily on visual elements in advertising, store design, and packaging. Many of our reactions to color come from _________ ______________. These are cultural connotations such as the color black for mourning. But other reactions are biological. Women tend to be drawn to brighter colors, for instance. Because colors are so powerful, they are an important concern in packaging design. Ultimately they can become a part of a company's trade dress.

learned associations

repetition increases ___________.

learning

conditioning results in ____________.

learning Learning is a relatively permanent change in behavior caused by experience. The experience can be direct or it can be observed. Learning is an ongoing process. Learning is an ongoing process. Our knowledge about the world constantly updates as we are exposed to new stimuli and as we receive ongoing feedback that allows us to modify our behavior when we find ourselves in similar situations at a later time. The concept of learning covers a lot of ground, ranging from a consumer's simple association between a stimulus such as a product logo (e.g., Coca-Cola) and a response (e.g., "refreshing soft drink") to a complex series of cognitive activities (e.g., writing an essay on learning for a consumer behavior exam).

frequency marketing

marketing initiative that rewards frequent purchases with cash, rebates, merchandise, or other premiums class: punch card (frozen yogurt) --> buy 6, get one $2.50 off

Like color, ________ can also stir emotions and memory.

odor

figure-ground

one part of the stimulus will dominate (the figure) while the other parts recede into the background (ground)

closure

people perceive an incomplete picture as complete

identity theft occurs when someone steals your _____________ _______________ and uses it without your permission.

personal information class: 1/16 people will deal with identity theft advice: monitor credit reports

We learn about ___________ by observing others' behavior.

products

Consumer behavior impacts directly on major _________ __________ issues that confront our society.

public policy

compulsive consumption

refers to repetitive and often excessive shopping performed as an antidote to tension, anxiety, depression, or boredom. class: lady who drank 2.2L of coke everyday (2lbs of sugar) compulsive: don't need it to function, addiction: can't function w out it (change behavior for it)

The meaning we assign to a stimulus depends on the _________, or set of beliefs, to which we assign it. In a process called priming, certain properties of a stimulus evoke a schema. This leads us to compare the stimulus to other similar ones.

schema

Companies think carefully about the impact of _______________ on our product experiences.

sensations

Products and commercial messages often appeal to our __________, but because of the profusion of these messages we don't notice most of them

senses

Marketers are seeking ways to exploit the power of scent. You may notice products with scent such as aircraft cabins. A consistent scent could ultimately register with consumers as a brand's _________ _______________.

sensory signature

Figure 3.1 shows how as consumers we are exposed to _______ ________ through our sensory receptors. We then interpret those stimuli to which we paid attention. This image also emphasizes the three key stages of perception: exposure, attention, and interpretation.

sensory stimuli

There are ________ learning theories which range from those that focus on connections between actions and consequences to those that focus on understanding complex relationships and problem solving.

several

The Student Digital Privacy and Parental Rights Act of 2015

that would prevent companies from selling K-12 students' online data to third parties or otherwise sharing information unless it is for a school-related purpose. Class: SAT/ACT scores can't be sold --> however, info you put on SAT form can be sold to schools that want to target you

The Personal Data Notification & Protection Act of 2015

that would strengthen the obligations companies have to notify customers when their personal information has been exposed

memory

the persistence of learning over time through the storage and retrieval of information

gamification

the process of building customer loyalty through the offering of free apps

consumer socialization

the process through which a person acquires the knowledge and skills to function as a consumer class: parents are usually the biggest influencers on how consumers grow up.

service scripts

the sequence of events a consumer expects to experience in a service situation

endowment effect

the tendency of people to be unwilling to sell a good they already own even if they are offered a price that is greater than the price they would be willing to pay to buy the good if they didn't already own it

phantom vibration syndrome

the tendency to habitually reach for your cell phone because you feel it vibrating, even if it is off or you are not even wearing it at the time

embeds

tiny figures inserted into magazine advertising by using high-speed photography or airbrushing; these hidden figures, usually of a sexual nature, supposedly exert strong but unconscious influences on innocent readers ex. Molson image inside of leaf

Our senses play quite a role in the decisions marketers make. For instance, marketers rely heavily on __________ __________ in advertising, store design, and packaging. They communicate meanings on the visual channel through a product's color, size, and styling. An interest in ______ has spawned new products. Some brands utilize scent easily. For instance, Starbucks requires baristas to grind a batch of coffee each time they brew a post instead of just once each morning to ensure customers have that intense smell during their Starbucks' experience. Stores and restaurants often play certain kinds of ________ to create a certain mood. Recent research found that participants who simply ________ an item for 30 seconds or less had a greater level of attachment with the product. This connection in turn boosted what they were willing to pay for it. A food item's _______ and the values we attach to it influence how we experience the actual taste. These aspects can be called a brand's sensory system. We'll cover these 5 aspects of branding in learning objectives one and two. The Coca-Cola bottle also illustrates an example of how design can facilitate product success.

visual elements scent music touch image

learned associations - vision: color->association->marketing application

yellow->optimistic & youthful->used to grab window shoppers attention. (burger king) red->energy->often seen in clearance sales.(coca-cola) blue->trust & security->banks (ford) green->wealth->used to create relaxation in stores. (starbucks) orange->aggressive->call to action: subscribe, buy or sell. (nickelodeon) black->powerful & sleek->luxury products. (Gucci) purple->soothing->beauty & anti-aging products (Hallmark) class: many/almost all fast food restaurants have red & yellow in logo (Wendy's, Burger King, McDonalds...) -> see red; red induces appetite; tells brain that you're hungry. Canton Hospital -> their logo was dark red (made you think of blood and bad)... now its changed to blue; more trusting and secure.