Marketing Test #3

Net Promoter Score (NPS)

"How likely is it that you would recommend [brand] to a friend or colleague?" NPS is a specific type of survey to measure the experience customers have with brands Promoters - scores 9 to 10, customers who are loyal enthusiasts Passives - scores 7 and 8, customers who are satisfied with but not enthusiastic about the brand Detractors (scores 0 through 6) - customers who are unhappy and can hurt your brand NPS Score = % promoters - % detractors

Brand Image Mapping

Ask consumers to write down the first 5 to 10 words that come to mind (recall) when thinking about a brand Maps the words according to rank (first association vs. last) and frequency among targeted consumers. Can include color associations Helps track consumer perception and gauge brand image health

Surveys + Brand Awareness

Brands commonly create surveys to understand how well customers recall and recognize their products These surveys are one way that brands can test to see if advertising is working

To identify problems shared among customers, get multiple consumers to fill out a grid 5 categories, 6 steps

Categories: communications, symbolic cues, products, environment, people Steps: sense/ categorize, remember, think, feel/evaluate, want/should, act Step 1: what catches your attention? Example trigger: people all in business clothes Step 2: Create Vertical Casual Chains within each Category Step 3: Complete the entire grid Step 4: Compile insights from all customers and look for common triggers Step 5: Identify experimental problems for your target consumer

Creating Good Surveys (8 Steps)

1. Reexamine the research question 2. Specify what information the survey must collect 3. Identify who should take the survey 4. Develop the questions to ask 5. Create "dummy" tables to show how we will use the data 6. Develop a way to recruit people to take the survey 7. Build and test the survey 8. Field the survey

Factors Affecting Conformity Related to Social Proof

1. The public nature of the judgements 2. The unanimity of the majority (degree to which everyone in the group agrees or does the behavior) 3. The size of the group

Brand image

A consumer could have awareness of a brand but feel disdain for it For this reason, marketers will also use surveys to measure how target customers feel about brands

Individualistic vs. Collectivism (IDV)

A society's position is reflected in whether people's self-image is defined in terms of "I" or "we" High scores (individualism): individuals are expected to take care of only themselves and their immediate family Low scores (collectivism): individuals can expect their relatives or members of a particular in-group to look after them in exchange for unquestioned loyalty

Technology (culture)

Advances (and lack of advances) to technology and medicine can shape culture and become agents of change Ex: access to the internet, smartphones, birth control, medical treatments (longer lifespan) especially beneficial for women bc of control over family planning allowing them to stay in school longer and stay in the workforce longer

Factors to consider (Cross-Cultural Analysis)

Linguistic barriers (issues of translation, logos, literacy rates) Advertising appeals (humor, sex appeals, etc.) Legal barriers (regulations, product categories like cigarettes or alcohol) Cultural Dimension (Hofstede's 6 Cultural Dimensions)

Needs for uniqueness lead to demand for products that are:

Customizable Scarce Innovative Vintage or antique Foreign And preference for unique and nontraditional shopping venues (e.g. garage sales or niche online retailers)

Cross-country analyses

Marketers should look at score comparisons between countries to decide the marketing strategy and degree of adaptation needed Country Comparison Hofstede - compare countries on the hofstede insights website

High-Context Cultures

Ex: East Asian, Latin America, Southern Mediterranean, Arab countries Share common values and assumptions Not necessary to say everything explicitly Non-verbal cues often communicate what is not said

True or False: Culture impacts biological needs (e.g., the need to eat, the need forshelter, etc.).

False

True or False: In addition to investing in huge call centers, smart marketers are using AI-driven chatbots to meet consumer needs while reaping significant cost savings.

False

True or False: In markets where interdependence is more important than independence, marketers may choose to focus their communications on messages that portray individual achievement.

False

True or False: Since influencer marketing comes from sources who have nothing to gain by promoting brands' products and services, it is seen as the "best advertising."

False

True or False: Since the 1960s, no marketplace trends have had as significant an impact on the variables of the 4 P's marketing mix as globalization.

False

Reciprocity (Tactics)

Favor first: give a favor first then ask for a favor Reciprocal concession: ask for a large favor followed by a smaller favor Also used by charities - often open up by asking for large donations, then "concede" by asking for smaller donations Negotiators often open with big demands, then "concede" by asking for their actual needs

Celebrity Appeals

Few studies exist, however Koreans make use of celebrity endorsements more than in the U.S. and show the most favorable response to the brand and purchase intentions. It could be that collectivist cultures seek to imitate celebrities the most. Celebrities in the U.S. act as themselves (spokesperson), whereas celebrities in Korea take on actor roles, putting them in character roles to best make use of the product

Functional vs. Experimental Appeals

Functional appeals - emphasis the features and benefits of a product More persuasive in developing markets (ex: OMO Brazil) Experimental appeals - evokes sensations, feelings, and imaginations More persuasive in developing markets (ex: Subaru unkhaki world USA)

Sex Appeals

Have had a positive impact on Purchase Likelihood in most countries, difference between cultures is in the comfort with nudity Appear to differ based on gender and culture Advertisers use sex because it can be effective. Sex sells because it attracts attention. People are hardwired to notice sexually relevant information, so ads with sexual content get noticed. Nudity has associations of luxury and status in many European countries, the US, and Canada

High vs. Low Identity Signaling Products

High identity signaling products: social/ public products E.g., apparel, music, and products linked to social life Low identity signaling products: functional products E.g., bicycle lights, pens, dish soap, toothpaste, etc.

Indulgence vs. Restraint (IND)

High score (indulgence): allows relatively free gratification of basic and natural human drives related to enjoying life and having fun Low score (restraint): suppresses gratification of needs and regulates it by means of strict social norms

Masculinity vs. Femininity (MAS)

High scores (masculine): a preference in society for achievement, heroism, assertiveness, and material rewards for success. Society at large is more competitive . Low scores (femininity): a preference for cooperation, modesty, caring for the weak and quality of life. Society at large is more consensus oriented

Belonging vs. Being Unique

How do people balance conflicting needs for social group identification and individual uniqueness? Conform on identity signaling attributes (e.g. brand) Differentiating on uniqueness attributes (e.g. color)

Long Term Orientation vs. Short Term Normative Orientation (LTO)

How societies prioritize the past while dealing with the challenges of the present and the future High scores (long term): encourage thrift efforts using modern education as a way to prepare for the future Low score (short term): prefer to maintain time-honored traditions and norms while viewing societal change with suspicion

Cross-Cultural Analysis

In consumer behavior terms, understanding the extent that consumers in multiple markets think and act differently To understand which of the four marketing approaches to take, marketers should conduct a cross-cultural analysis to choose the right approach for their particular products and services

Information Processing

Individualist Cultures Individualistic, low-context cultures are more verbally oriented and used to explanations, persuasive copy, and rhetoric Members of individualistic, low power distance and low uncertainty avoidance cultures (North-West of Europe and the Anglo-Saxton world) are verbally oriented Collectivist Cultures People of collectivist, high-context cultures - used to symbols, signs, and indirect communication Collectivist and/or high power distance cultures, people will acquire information more via implicit, interpersonal communication and base their buying decisions on feelings and trust in the company

True or False: A reference group serves as a source of comparison, influence and norms for consumers' opinions, values and behaviors.

True

True or False: Almost every industry is shifting from physical product development to technology product development.

True

True or False: As consumer preferences shift, the demand for marketers focused on product innovation has shifted to demand for technology product managers.

True

True or False: Consumers sometimes mistrust or resent international brands, seeing them as hurtful to the local culture

True

True or False: Cultures provide boundaries that tend to impact consumer behavior.

True

True or False: Google Shopping is a service that allows users to search for products online and compare prices among various vendors.

True

True or False: In consumer behavior terms, cross-cultural analysis means understanding the extent to which consumers in multiple markets think and act differently.

True

True or False: Reference groups achieve their power through word of mouth (WOM)

True

True or False: The degree of influence that a reference group exerts on an individual's behavior depends on a number of factors, including the individual, the product choice at hand and social factors.

True

True or False: There are both primary and secondary membership groups.

True

Characteristics of Social Proof

Normative - in the service of avoiding the disapproval, scorn, or ostracism that accompanies norm violations (people don't want to be labeled jerks or weirdos) Informational - in the service of learning what is right or appropriate in a situation, like in new situations (sometimes people just don't know what to do or believe)

Religion (culture)

Often the most important social institution. Biggest Advice - Don't Mess Up! There is a time and place to critique religion and a time and place not to You don't want to insult religion or culture from religion BE RESPECTFUL of religious cultural norms and beliefs

Consistency

Once we make a choice or take a stand, we feel pressure to behave consistently with that commitment Tactics: 1) foot-in-the-door Get a large favor by getting a small one Small commitments manipulate a person's self-image and position them for larger commitments later This tactic is most effective when initial commitments are... active, public, effortful (e.g. get it in writing), internally motivated (voluntary) 2) low-balling Offer an item at a lower price than is actually intended to b charged, and after eliciting a commitment, raise the price to increase profits

Marketing implications: identity signaling

Try to appeal to multiple social groups by making certain products limited access while mass marketing others E.g., Nike limited edition shoes vs. mass market shoes Prevent mass market followers with steep barriers to conformity to keep social identity value high E.g. Gucci, Chanel, Abercrombie & Fitch

Scarcity

Opportunities seem more valuable when their availability is limited Marketing: Companies can charge more for "limited edition" products Companies advertise "one-time" or "limited offers" to boost sales Companies artificially create scarcity by taking some items off the market How does scarcity work? Rareness signals values People desire things they're told they cannot have People infer that something is scarce due to others buying it and assume that means it must be good

Global Marketing Opportunities

Option 1: marketers could approach international markets with a global marketing strategy (the same positioning, value propositions, and perhaps even advertisements) Option 2: a marketer could take on a local marketing strategy Marketer would customize both the product and its marketing communications approach for each market Option 3: the marketer could take a hybrid approach, leaving the product unchanged but customizing its communications strategy Option 4: the marketer could take a hybrid approach, changing the product itself but leaving the communications strategy unchanged

Likeability

We are more likely to say yes to someone we know and like What factors increase likeability? Similarity Compliments Contact and cooperation

How can we use social proof to change behavior?

We use social proof to convey "norms" to consumers in hopes that they conform Marketer's use two types of norms: Descriptive norms - tells consumers "how things currently are" Injunctive norms - tells consumers "how things should be" Which norm works better? Descriptive norms were more effective at changing behavior as people looked to others to decide how to behave Just make sure that the descriptive behavior you communicate is the desired behavior or else the norms can backfire

Brand Community

a group of ardent consumers organized around the lifestyle, activities, and ethos of the brand" Ex: Harley Davidson making an identity to have a stronger brand community The group you belong to helps define and communicate who you are to yourself and to others

Emotional Appeals

a method of persuasion that's designed to create an emotional response Types of emotional appeals: Ego-focused (pride, happiness, etc.) - more appealing in collectivist cultures (ex: Adidas China commercial) Other focused (empathy, peacefulness) - more appealing in individualistic cultures (ex: Budweiser USA commercial) The relative novelty of the appeals in the two cultures induced higher levels of motivation to process the message, and therefore increase brand liking

________ groups are groups that consumers plan to join in the future and that they have a decent chance of joining due to direct contact with the group. a. Anticipatory aspiration b. Symbolic aspiration c. Primary aspiration d. Secondary aspiration

a. Anticipatory aspiration

As business students, it's important to add a fifth "P" to McCarthy's marketing mix:"________." a. People b. Performance c. Practice d. Publicity

a. People

Acculturation is ______. a. the process of driving cultural change, often the result of trying to convince consumers to adopt new products and services within a new environment* b. the process of understanding the extent to which consumers in multiple markets think and act differently c. a group identity shaped by shared knowledge, belief, law, morals, customs and many other factors d. the process of interaction and integration among the people of different cultures

a. the process of driving cultural change, often the result of trying to convince consumers to adopt new products and services within a new environment*

_______ is a group identity shaped by shared knowledge, belief, law, morals, customs and many other factors, an all-encompassing, comprehensive concept that pervades all aspects of consumer behavior. a. Sociality b. Culture c. Perception d. Community

b. Culture

_________ are groups that an individual is unlikely to belong to despite the fact that they may accept and strongly believe in the group's attitudes or closely held beliefs. a. Anticipatory groups b. Symbolic groups c. Dissociative groups d. Informal reference groups

b. Symbolic groups

Edmund Jerome McCarthy's definition of was traditionally referred to as a product's distribution strategy. a. price b. place c. product d. promotion

b. place

That consumers can purchase from a fragmented distribution landscape involving sites the marketer has no control over is a condition of this element of the 4 P's marketing mix. a. price b. place c. product d. promotion

b. place

As a result of _______ , companies could demonstrate they truly understood consumer needs because advertisers could serve up ads based on consumers' browsing patterns, making ads truly relevant to consumers. a. rebranding b. remarketing c. scaling d. forecasting

b. remarketing

Cross-cultural analysis is _______. a. the process of driving cultural change, often the result of trying to convince consumers to adopt new products and services within a new environment b. the process of understanding the extent to which consumers in multiple markets think and act differently c. a group identity shaped by shared knowledge, belief, law, morals, customs and many other factors d. the process of interaction and integration among the people of different cultures

b. the process of understanding the extent to which consumers in multiple markets think and act differently

Consumer socialization is___________. a. realized when one acts in a way that is similar to those around him or her in order to gain acceptance b. the providing of children with the skills, knowledge, attitudes, and experiences necessary to function as consumers c. the introduction of oneself into a consumer group, including primary and secondary membership groups d. a source of comparison, influence, and norms for consumers' opinions, values and behaviors

b. the providing of children with the skills, knowledge, attitudes, and experiences necessary to function as consumers

Conformity

behavior in accordance with socially accepted conventions or standards (fitting in and not standing out)

Identity Signaling

behavior motivated by the belief that the behavior will convey particular information about the individual to the self or to others Desire to define the self and signal the self to others Explain fads and fluctuations in product demand Groups abandon fads when other (undesirable) groups pick them up Ex: Jocks vs. Geeks wristbands Not all product categories are necessarily used for identity signaling, although any product can become an identity signal

Which factor affecting a reference group's influence over consumer purchase decisions is displayed by the new sneakers your friends make a point of showing off or the latest gadget you can see your friends using. a. conformity b. the group's power and expertise c. conspicuousness of the product d. personality characteristics

c. conspicuousness of the product

According to the chapter, this is a strategy that can be quite effective for lower involvement products where service and other aspects of the marketing mix have less importance. a. providing long-term warranties b. offering incentives for positive online reviews c. matching prices for items customers find online d. allowing product customization

c. matching prices for items customers find online

Which of the following is presented in the chapter as an option for marketers to choose from based on their decisions to customize products and/or communications strategies for international markets? a. changing the product itself but leaving its communications strategy unchanged b. customizing both the product and its marketing communications approach for each market c. leaving the product unchanged but customizing the communications strategy d. all of these are presented in the chapter as options for marketers

d. all of these are presented in the chapter as options for marketers

Which factor affecting a reference group's influence over consumer purchase decisions is displayed by a young corporate sales rep seeks the advice of a friend or imitates the behavior of a more senior sales rep, a member of his reference group, by taking the client to a restaurant that is frequented by executives whom he views as role models. a. conformity b. the group's power and expertise c. conspicuousness of the product d. relevant information and expertise

d. relevant information and expertise

Globalization is ________. a. the process of driving cultural change, often the result of trying to convince consumers to adopt new products and services within an new environment b. the process of understanding the extent to which consumers in multiple markets think and act differently c. a group identity shaped by shared knowledge, belief, law, morals, customs and many other factors d. the process of interaction and integration among the people of different cultures

d. the process of interaction and integration among the people of different cultures

Humor Appeals

differs based on culture Humor in advertising tends to improve brand recognition, but does not improve recall, message credibility, or buying intentions Humorous campaigns are often expensive because they have to be culturally situated, and must be constantly changed

Culture is influenced by

social institutions: family, religion, school, media, government, corporations

Social Proof

we look at what other people are believing or doing to determine how we should believe or act in a situation, look to get information or "proof" from others Asch's "Study of Perception" Participants sat with a group of students and were asked to judge which comparison line (in B) matched the standard (A) But everyone else in the group was part of the experiment and gave wrong answers Most of the time participants changed right answers to the wrong one

Experimental Auditing

goal: to identify "triggers" that catch consumer's attention and understand the effect of that trigger on the customer's chain of reactions going from "sense" all the way to "act" Sum of this chain is the customer's experience

Cultural Dimension (Hofstede's 6 Cultural Dimensions)

Power Distance Index (PDI) Individualistic vs. Collectivism (IDV) Masculinity vs. Femininity (MAS) Uncertainty Avoidance Index (UAI) Long Term Orientation vs. Short Term Normative Orientation (LTO) Indulgence vs. Restraint (IND)

Recall vs. Recognition

Recall - focuses on what can be remembered without prompting by giving brand names (stronger measure of memory) Recognition - focuses on which brands you recognize when prompted with their brand names

6 principles of social influence

Reciprocity Consistency Scarcity Liking Social identity Social proof

Surveys + Customer Satisfaction

Regular surveys will reveal if satisfaction is rising or falling, giving marketers insights into what causes satisfaction levels to change Monitoring satisfaction levels can also help you predict changes to word of mouth

Reasons for conforming

Social identity signaling Social proof

Conflicting Identity Motivations

Need for uniqueness: the traits of pursuing differences relative to others... through consumer goods... for the purpose of developing and enhancing one's self-image and social image Higher needs for uniqueness lead consumers to differentiate within groups by choosing less popular opinions among those that are associated with their group

Government (culture)

Surprisingly little influence on values and thought patterns But can have large sway on behaviors, especially if: No separation of church and state State owned media 10 most censored countries: Eritrea, North Korea, Saudi Arabia, Ethiopia, Azerbaijan, Vietnam, Iran, China, Myanmar, Cuba

Power Distance Index (PDI)

The degree to which the less powerful members of a society accept and expect the power is distributed unequally High scores: people accept a hierarchical order in which everybody has a place and needs no justification Low scores: people strive to equalize the distribution of power and demand justification for inequalities of power

Uncertainty Avoidance Index (UAI)

The degree to which the members of a society feel uncomfortable with uncertainty and ambiguity High scores: maintain rigid codes of belief and behavior and are intolerant of unorthodox behaviors and ideas Low scores: maintain a more relaxed attitude in which practice counts more than principles

Reciprocity

The idea that we want to repay what another person has provided us Universally understood, fundamental social norm Vital to economic exchange and personal relationships What this means for social influence is that we are more likely to do someone a favor when they have done us a favor first

Cross-Cultural Consumer Behavior: Effective International Advertising Appeals

1. Information Processing 2. Functional vs. Experimental Appeals 3. Emotional Appeals 4. Sex Appeals 5. Celebrity Appeals 6. Humor Appeals

Consumer behavior may come from...

Demographics/Socioeconomic Awareness Intention Motivation Attitudes Psychographic/Lifestyle

Low-Context Cultures

Ex: America, Canada, Western Europe Prefer clear descriptions, unambiguous communication, and are highly specific Do not rely or trust relationships in business communication Rely on spoken or written word

Starbucks Experimental Auditing Example: Communications

Sense: I see a "Pumpkin Spice" drink ad Categorize: Fall drinks Remember: Reminds me of how much I love fall and how much I love pumpkin pie Think: makes me think of how much I want to go home and make pumpkin pie feeling/ evaluate: excited Want: I want to make pumpkin pie when I get back home

Culture

The shared patterns of behavior and interactions, cognitive structures and understanding that are learned by socialization Culture is the sum of total of learned and shared: values, beliefs, rituals, symbols, thought processes