MKTG 450 Consumer Behavior Final

Figure 14.3 Types of Adopters

Early adopters are very influential to the early majority Innovators are the first (dance to the beat of their own drum) Early adopters are very connected to the early majority If you can get the early adopter to convert, then everyone else will follow suite

Place-Based Subcultures

"Birds of a feather flock together in place-based subcultures." This age-old saying is the perfect motto for place-based subcultures. A place-based subculture means that people tend to be like those who live in the same areas, types of homes, and types of neighborhoods. They share common consumption patterns and common socio-economic characteristics. Marketers use systems like Nielsen's PRIZM to identify the clusters of people who are also grouped by zip code. People who live in close proximity, tend to spend similarly Diffusion of innovation

What is Culture?

-Culture is the accumulation of shared meanings, rituals, norms, and traditions -Culture is a society's personality -Culture is the "lens" through which people view products -Culture is an ecosystem -Marketers try to intervene into a culture -Fashion isnt just food, (yoga/exercise)

High Culture and Popular Culture

-An art product is an object we admire for its beauty and our emotional response -A craft product is admired because of the beauty with which it forms a function -Mass culture creates products for a mass market Though culture can create popularity for high and low art and for arts and crafts, there are some basic distinctions. A piece of art is original, subtle, and valuable and it is typically associated with society's elite. A craft tends to follow a formula that permits rapid production. Mass culture products seek to please the average taste of the average audience.

Generational Values/Habits etc

-Baby boomers are very brand loyal and is unsettled when they have to make an unfamiliar decision. -Millennials are not brand loyal which can be difficult in our careers of trying to get consumers to buy into your brand/product -Advertising today is making people feel some type of way -We use all of these all at different times -Most consumer do not want to be cognitive shoppers -Make inferences to make decisions quickly so you don't have to be a rational consumer -Sampling is a good way to get people to try a product, little risk involved

What is Acculturation?

Acculturation occurs, at least in part, with the influence of acculturation agents. -Family -Friends -Church organizations -Media -When you adapt and become a part of the subculture -A subculture is part of your identity

Characteristics of opinion leaders

1. Experts 2. Unbiased evaluation 3. Socially active (followers) 4. Similar to consumer 5. Among first to buy The original framework describing opinion leadership is known as the two step flow model of influence. It proposes that a small number of influencers disseminate information because they can modify the opinions of a large number of other people. Research has shown that this might not be the case. Instead, influentials share the information with those who are easily influenced and then those people continue to talk among themselves, resulting in information cascades. The influence of these opinion leaders is more widespread online. Forrester calls these people Mass Connectors and they are responsible for about 80% of brand mentions online.

Generational categories

1. The war baby generation: parents of baby boomers, country 1st, saved money 2. Baby Boomers: own most of wealth, love to spend, grew up in large families, Watergate scandal was pivotal point where negative news started coming out a. Active and physically fit, peak earning years, midlife crisis 3. Generational X: smaller, 60M, frugal, DIY, practical, value balance a. Values-oriented, desire stable families and view home as expression of individuality 4. Generation Y: 80M, us a. Echo boomers=millennials- Gen Yers b. 1/3 of US pop., $170B a year, computers in home 5. Generation Z: kid's w/ tablets, healthy meals b/c of gen X

Brand Communities and Consumer Tribes

A group of consumers who share a set of social relationships based upon usage or interest in a product Consumer tribes share emotions, moral beliefs, styles of life, and affiliated product Brandfests (organized events) celebrated by community (harley davidson, Jeep)

Value Concepts

A value is a belief that some condition is preferable to its opposite. In some cases, values are universal. We all value health, wisdom, and peace. What sets cultures apart is the relative importance of these universal values. This set of rankings constitutes a culture's value system. It is usually possible to identify a general set of core values that uniquely define a culture.

Positive vs. Negative Reference Groups

AVOIDANCE GROUPS: motivation to distance oneself from other people/groups o You may carefully study the mannerisms of a group you dislike (e.g. nerds, druggies, or preppies) and avoid anything that would identify you with that group ANTIBRAND COMMUNITIES: coalesce around a celebrity, store, or brand -but in this case they're united by their disdain for it o Same as being apart of the brand community because sending message of who we want to be Underdogs have advertising advantage because big corporations responding to small businesses is seen as bullying

The Market Maven

Actively involved in transmitting marketplace info Enjoy shopping and are aware of what's happening in the marketplace Overall knowledge of how and where to get products ->tour guide of your city, knows where all the best spots are

Subcultures pertaining to African americans, Hispanic Americans, and Asians

African Americans: household income and educational levels rising, 13% of US population. Hispanic Americans: fastest growing, many different backgrounds, 16% of US population, brand loyal, young, savings is not important to homemaker, shopping is a family affair (Cali to France). convenience/saving time ads go over their heads b/c not what they want. Asian: most affluent, best educated, most brand-conscious but least brand loyal, culturally diverse subgroups speak many different languages

Variables Affecting FLC

Age Marital Status → evolving to define any long term couple living together -Bachelor and newlyweds are more likely to exercise, go out to bars, concerts, movies, and drink alcohol Children in the Home Ages of Children in the Home -Families with young children are more likely to consume healthy foods

The Context of Culture

An important subcultural difference is how abstract or literal a group is. Sociologists make a distinction between high-context cultures and low-context cultures. In a high-context culture, group members are tightly knit and they infer meanings that go beyond the spoken word. Symbols and gestures are used instead of words to carry the weight of the message. In contrast, people in a low-context culture are more literal. Compared to Anglos, many minority cultures are high-context and have strong oral traditions. This means that consumers are more sensitive to nuances in advertising. You want someone in the same context promoting to certain message/product If you are understanding of the culture, use qualititive research to have a better understanding

Multiattribute Attitude Model (Fishbein)

Assumes that consumers' attitude toward an attitude object (Ao) depends on the beliefs they have about several of its attributes The Fishbein model, developed by Martin Fishbein, is the most influential of multiattribute models.

VALS2

Based on segments grouped by self-orientation and resources. Self-orientation may be based on ideals, achievement, and self-expression. Resources range from high to low. Innovators are those whose high resources result in less emphasis on self-orientation. Strugglers are those whose low resources also result in little emphasis on self-orientation.

The Modern Family Unit

Changed in family structure -Boomerang kids: grown children who return to their parent's home to live -Sandwich generation: a description of middle-aged people who must care for both children and parents simultaneously -Extended: grandparents, traditional (men stay until marriage) -Blended families through divorces -DINKS: Doube Income No Kids • Changes in household concept -Growing single households -Blended families through divorces -Voluntarily Childless: don't want kids

Three Buckets of Consumer Behavior

Cognitive- Deliberate, rational, sequential Habitual- Behavioral, Unconscious, automatic Affective- Emotional, Instantaneous when a task reqiuires a well-thought-out rational approach, we will either invest the brainpower to do ir or find shortcuts ("what i usually do, "gut feeling" based on emotional reaction) Some cases we make a mental budget (skip candy bar today if I'm eating a BBQ sandwich tomorrow)

Prerequisites for Successful Adoption

Compatibility: Innovation should be compatible with consumers' lifestyles Trialability:People are more likely to adopt an innovation if they can experiment with it prior to purchase Complexity: A product that is easy to understand will be chosen over competitors Observability: Innovations that are easily observable are more likely to spread Relative Advantage: Product should offer relative advantage over other alternatives

Postpurchase Satisfaction

Consumer satisfaction/dissatisfaction (CS/D) Expectancy disconfirmation model - don't promise more than you can deliver. When a product doesn't perform as expected (often based on advertising) we are dissatisfied. -EDM- do not overpromise when try to sell your product to the consumer -Satisfication of the product depends on the expectation of it -Americans run on extremes- buy a very expensive product, then buying every else for cheap

Core values

Core values such as freedom, youthfulness, achievement, materialism, and activity characterize American culture. The process of learning the beliefs and behaviors endorsed by one's own is culture enculturation. Enculturation- second nature, born into the culture Acculturation- when you move and assimilate and take on and become a part of the culuture We call the process of learning the value system and behaviors of another culture acculturation.

Heuristics

Covariation: infers hidden dimensions of products from attributes we observe. The signal communicates an underlying quality. -For instance, someone selling a used car will try to make the car look clean because cleanliness may be associated with reliability (linking one trait/characteristic to another) Country of origin is often a determinant attribute in the decision-making process. -Consumers think of Switzerland for precision in watches, Italy for leather goods, and France for wine. Familiar brand names can serve as a shortcut as can higher prices, which consumers may assume suggest higher quality.

Crescive norms

Crescive norms we discover as we interact with others and these include customs, mores, and conventions. Custom: a norm that controls basic behaviors such as division of labor in a household. A more: a custom with a strong moral overtone. It may involve something that is taboo or forbidden. Conventions: are norms that regulate how we conduct our everyday lives. They may be subtle like how we furnish a room or what we wear to a dinner party.

Uses of Psychographic Studies

Define target market Create a new view of market Position the product Better communicate product attributes Develop product strategy

Family Life Cycle

Factors that determine how couples spend money: o Whether they have children o Whether both spouses work Family life cycle (FLC) a classification/concept that segments consumers in terms of changes in income and family composition with change in demands placed on income Better predictor than age

Figure 14.4 Comparison of Acceptance Cycles

Figure 14.4 illustrates that fashions begin slowly, but if they "make it" they diffuse rapidly through a market, peak, and then retreat into obscurity. Different classes of fashion have difference acceptance cycles. A classic is a fashion with an extremely long acceptance cycle. A fad is a very short-lived fashion. Fashion is an accepted thing for some duration of time Marketers need fashion, they are the ones pushing

Getting to Know the Generations

Gen Z: -Born in the late 1990's to early 2000's -Most diverse generation -Digital natives Gen Y: -"Echo Boomers" = "millennials" = Gen Yers -Make up one-third of U.S. population -Spend $170 billion a year -First to grow up with computers in their homes, in a 500-channel TV universe Gen X: -Consumers born between 1966 and 1976 -Today's Gen Xer is both values-oriented and value-oriented -Desire stable families, save portion of income, and view home as expression of individuality Baby Boomers: -Consumers born between 1946 and 1965 -Active and physically fit -Currently in peak earning years: *Food, apparel, and retirement programs *"Midlife crisis" products

Hofstede Dimensions of National Culture

Hofstede's dimensions are among the most widely used measures for understanding cross-cultural values. Power distance: the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. Individualism: the degree to which individuals are integrated into groups. Masculinity is the distribution of roles between the genders. Uncertainty avoidance: a society's tolerance for uncertainty and ambiguity. Long-term orientation: refers to values associated with Long-Term Orientation are thrift and perseverance; values associated with Short-Term Orientation are respect for tradition, fulfilling social obligations, and protecting one's "face." Indulgence versus restraint: the extent to which a society allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. A culture high on restraint suppresses gratification of needs and regulates it by means of strict social norms.

Figure 12.2 Living Room Clusters and Social Class

In one study of social differences in taste, researchers catalogued home owners' possessions as they sat in their living rooms and asked them about their income and occupation. They identified clusters of furnishings and decorative items that seemed to appear together with some regularity. They found different clusters based upon social status as shown in the figure.

The Diffusion of Innovations

Innovation: any product that consumers perceive to be new -New manufacturing technique -New product variation -New way to deliver product -New way to package product Diffusion of innovation -Successful innovations spread through the population at various rates

Values of Older Adults

It is important for marketers to understand the psyche of older people. Researchers point to a set of key values relevant to mature consumers. rAutonomy: want to be self-efficient Connectedness: value bonds with friends and family Altruism: want to give something back to the world

Distinguishing Characteristics of the Hispanic Market

Looking for spirituality, stronger family ties, and more color in their lives Hispanic market: Willing to spend more on groceries Shopping is a family affair Convenience/saving time is not important to Hispanic homemaker Hispanic culture is important Quality > convenience in Hispanic community Fastest growing subculture

Figure 14.1 The Movement of Meaning

Mainstream culture can modify symbols associated with subcultures so they are appealing to larger audiences. This is known as cooptation. It means that outsiders transform the original meanings of the objects. Cultural meanings can be created from everyday products and these meanings then move through society. The figure shows that advertising and fashion play a key role in this process.

Noncompensatory Decision Rules

Making habitual or emotional decisions Lexicographic rule: consumers select the brand that is the BEST on the most important attribute -decide the most important attribute and buy it (college students = price) Elimination-by-aspects rule: MUST have a specific feature to be chosen -deciding between two of the cheapest by deciding on a specific reason Conjunctive rule: entails processing by brand (only consider brands that have all required attributes) -list of atttributes (organic), look at all the brands and decide based on that

Functions of Myths

Metaphysical:Help explain origins of existence Cosmological:Emphasize that all components of the universe are part of a single picture Sociological: Maintain social order by authorizing a social code to be followed by members of a culture Psychological:Provide models for personal conduct

Freud Theory

Much of one adults personality stems from a fundamental conflict between a persons desire to gratify his or her physical needs and the necessity to function as responsible member of society. This struggle plays out in the mind among three systems.

Myths

Myths are stories with symbolic elements that represent the shared emotions/ideals of a culture. Story characteristics: -Conflict between opposing forces -Outcome is moral guide for people -Myth reduces anxiety by providing guidelines

Social Judgment Theory

People assimilate new info about AO in light of what they already now They form latitudes of acceptance or rejection We know a box is heavy because we have lifted heavy boxes in the past Initial attitude = frame of reference IMPORTANT: people differ in term of info they find acceptable or unacceptable ASSIMILATION effects -> people tend to perceive messages within their latitude of acceptance as more consistent with their position messages within their latitude of acceptance as more consistent with their position than those messages actually are *PICKY MOMS CHOOSE JIF PEANUT BUTTER (smaller latitude of acceptance as person becomes more involved with an attitude object) CONTRAST effects-> we tend to see messages that fall in our latitude of rejection as even more unacceptable than they actually are

Consumers Behavior in Groups

People in larger groups have fewer constraints on behavior. Deindividuation occurs when our individual identities are submerged in the group. In other words, we don't stay out alone so we may behave differently. At a costume party, we may act wilder than we would in our everyday lives. The change in our shopping behavior in groups is the reason some brands use home shopping parties. Why do we tend to conform to the pressure of groups? -Culture pressure refers to how different cultures encourage conformity to a greater or lesser extent. For instance, the Japanese society emphasizes collective well-being and group loyalty over individuals' needs. -Individuals may believe that the group will apply sanctions to punish nonconforming behaviors. This is the fear captured in the factor, fear of defiance. -According to the principle of least interest, the person who is least committed to staying in a relationship has the most power because that party doesn't care as much if the other person rejects him. -As groups gain in power, compliance increases. The trait, susceptibility to interpersonal influence, refers to an individual's need to have others think highly of him or her. People do things in groups that they normally don't do alone

Self-Regulation

Persons effort to change or maintain his or actions over time, means we specify in advance hoe we want to respond in certain situation -Relates to the cognitive decision making process -You learn by brain processing- not that one is the right or wrong -How you regulate yourself Morning moral effect- tend to make more ethical decisions in the morning, and the more tired you become over the day you tend to make less ethical decision Feedback Loop- Provide people w/ info about their actions in real time and then give them a chance to change those actions so that you push them to improve (think "Your Speed" radars) We overbuy because we are very optimistic as American society in what we will get out of the services and products we buy

Digital Opinion Leaders

Power users: have a strong communications network that gives them the ability to affect purchase decisions for a number of other consumers, directly and indirectly. In advertising lingo, an impression refers to a view or an exposure to an advertising message. Forrester estimates that, each year, U.S. consumers generate 256 billion influence impressions as people talk about their lives with each other, telling stories and experiences that invariably include brands. These influence impressions are primarily delivered by—you guessed it—power users: Only 6.2 percent of social media users are responsible for about 80 percent of these brand mentions. Forrester calls these influencers mass connectors.

Steps in the Decision-Making Process

Problem Recognition: When we experience a significant difference between our current state of and some state we desire. -Quality of richards tv has not changed, only his standard of comparison and as a result, he has a new problem to solve Information Search: Process in which survey an environment for appropriate data to make a reasonable approach. -The spectrum of searching varies among shoppers of different demographics. Evaluation of alternatives: There are a lot of alternatives but consumers only consider a small amount -Evoked set (already familiar):Your goal when you buy a product is be on the evoked set -Consideration set (considering new ones): Consideration is if you here good things and considering purchasing it -First impression are really IMPORTANT for marketers/firms. Once they're hooked, marketers have less to worry about Product Choice: After assembling and evaluating relevant options, we must choose one.

Hierarchies of Effects

Read pg 264-265 The high-involvement hierarchy assumes that a person approaches a product decision as a problem-solving process. He or she is motivated to seek out info, carefully weigh alternatives and then come to a thoughtful decision -Think...Feel...Do (Cognitive learning process) The low-involvement hierarchy of effects assumes that the consumer initially doesn't have a strong preference for one brand over another; instead, he or she acts on the basis of limited knowledge and forms an evaluation only after he or she has bought the product. -Think..Do...Feel (Behavioral learning process) According to the experiential hierarchy of effects, we act on the basis of our emotional reactions. Packaging design brand name -Feel...Do...Think (Hedonic consumption)

Common Rituals:

Ritual are embedded with codes! Grooming: Grooming is important ritual in a lot of cultures. Help to inspire confidence before we face the world Gift-giving: "economic exchange" in which the the giver is reciprocated. Also symobolic exchange of something important Holiday:each cultural celebration typically relates to the adventures of one or more special characters (St. Patrick in Ireland) Rites of passage: Every society, both primitive and modern, set aside times for changes. Some natural (puberty), others individual (divorce)

Rituals

Rituals are sets of multiple, symbolic behaviors that occur in a fixed sequence and that tend to be repeated periodically. Many consumer activities are ritualistic. -Trips to Starbucks -Sunday brunch

Consumer View of Luxury Goods

SBI divides consumers into three groups based on their attitudes toward luxury. • Luxury is FUNCTIONAL: use money to buy things that will last and have enduring values. They conduct extensive prepurchase research and make logical decisions rather than emotional or impulse choices • Luxury is a REWARD: tend to be younger than first group but older than third. Desire to be successful and demonstrate their success. High end cars and homes in exclusive communities • Luxury is INDULGENCE: smallest of the three and tends to include younger consumers. Willing to pay a premium for goods that express their individuality. More emotional approach Gen X: don't like to spend on luxury, but will buy things that bring theme experience

Figure 14.2 Culture Production Process

Sometimes we might feel that we have too many choices but really at any point in time we might actually have just a small fraction of the total set of possibilities. The figure shows that when we select certain alternatives over others, our choice actually is only the culmination of a complex filtration process that resembles a funnel. Possibilities compete for adoption but then most drop out as they make their way down the path from conception to consumption. This winnowing process is called cultural selection.

Social Stratification

Status hierarchy-Most groups exhibit a structure, or status hierarchy in which some members are better off than others. They may have more authority or power, or other members simply like or respect them. Occupational prestige-In a system in which (like it or not) we define people to a great extent by what they do for a living, occupational prestige is one way we evaluate their "worth." Affluenza- Despite their wealth, affluent people re often are stressed or unhappy Cosmo-politanism- an arising population open minded group of people who strive to diversify their experiemces

Subcultures:

Subcultures: social identity that part of the self that our group memberships define →male vs. female (target by gender= most common & oldest way in US) • The categories that matter in establishing our consumer identity are subcultures (diet soda)

Freud- Superego

Superego= counterweight to ID -Conscience → comes in and squashes ideas internalizes society's rules and puts us in check

Taste Cultures

Taste culture differentiates people in terms of their aesthetic and intellectual preferences. -Concept help illuminate the important, yet subtle distinctions in consumption among social classes. Upper- and upper-middle-class are more likely to visit museums and attend live theater Middle-class is more likely to go camping and fishing

Gen Y and Z

Teenagers in every culture grapple with fundamental developmental issues when they transition from childhood to adult. Throughout history young people have coped with insecurity, parental authority, and peer pressure. The Saatchi & Saatchi advertising agency identified four basic conflicts common to all teens. 1) These are listed on the slide and described here. Autonomy versus belonging means that teens want to acquire independence so they try to break away from their families. But at the same time, they want to attach themselves to a support structure. 2) Rebellion versus conformity grasps that teens need to rebel against social standards of appearance and behavior but they need to fit in and be accepted by others. 3) Idealism versus pragmatism means that they tend to view adults as hypocrites whereas they see themselves as sincere. 4) Narcissism versus intimacy means that they tend to obsess about their appearance and needs. However, they also feel the desire to connect with each other.

The List of Values (LOV) The Means-End Chain Model

The list of values (LOV) scale isolates values with more direct marketing applications. This instrument identifies nine consumer segments based on the values members endorse. The means-end chain model assumes that people link very specific product attributes indirectly to terminal values. A technique researchers call laddering uncovers consumer associations between specific attributes and these general consequences. The ladder connects abstract concepts to functional product attributes. A number of companies track changes in values through large-scale surveys.

Terminal and Instrumental Values

The psychologist Milton Rokeach identified terminal values which are desired end states. The Rokeach Value Survey also identifies instrumental values which are those actions we need to take to achieve these terminal values. The idea of terminal value: Products that you buy perhaps will help assist you get to terminal values Bought a diet coke because too want to save calories, don't want to get fat, so that you can meet someone....Happiness it can go on and on and on...

Compensatory Rule

The rule requires consumer to consider the attributes of competing options (but don't necessarily do so) Simple additive rule: leads to the option with the largest number of positive attributes -not necessarily the best/meaningful attributes to you Weighted additive rule allows consumer to take in to account the relative importance of the attributes by weighting (similar to MAAM)

Self-Perception Theory

Theory states we maintain consistency as we infer that we MUST have a positive attitude towards a product bought (justification) • FOOT-IN-THE-DOOR technique: consumer is more likely to comply with a request if he has first agreed to comply with a smaller request • LOW-BALL technique: person is asked for a small favor and is informed after agreeing to it that it will be very costly • DOOR-IN-THE-FACE technique: person is first asked to do something extreme (which he refuses), then asked to do something smaller o Ask for $1000, move to $300 and sell even though usually spend $100

Brand Behaviors and Possible Personality Trait Inferences

There are many things a marketer can do to influence consumers' perceptions of a brand's personality. Consumers will infer things about a brand's personality from the brand's positioning in the marketplace. Don't change your brand image too much Sometimes the consumer does not allow change of image

Amount of Search & Product Knowledge relationship

There is an inverted-U relationship between knowledge and external search effort. People with very limited expertise may not feel they are competent to search extensively. Experts have a better sense of what information is relevant so they engage in selective search. Novice consumers tend to process information in terms of the big picture instead of detailed information. Who searches the MOST? Moderately knowledgeable consumers.

Discretionary Income

Tightwads hate to part with their money and actually experience emotional pain when they make purchases. Spendthrifts enjoy nothing more than spending. Frugality seems to be driven by a pleasure of saving, compared to tightwaddism which is driving by a pain of paying. You have to use rational thinking to get to tightwads Income is NOT as good of indicator of spending habits, social class is better Most affluent: Inherited wealth Self-made people (bigger spenders) Marketers like to target people who have earned money for this reason

Temporal Factors: Economic Time

Time is one of consumers' most precious resources. We may change what we want to buy based on temporal influences like what time it is or how much time is left before we need the product. Economic time points out that time is an economic variable - think "time is money." People's priorities determine their timestyle. Your timestyle determines how you spend your time resource. Some people feel that they are time poor. That means that they simply feel that they do not have sufficient time. -it may be just a perception because people actually have more time free from work than ever before, but there are just so many options now. Timestyle may vary across different cultures. people in different countries

Opinion Leaders' Influence

Two-step flow model of influence It proposes that a small group of influencers disseminates information because they can modify the opinions of a large number of other people. Consumers communicate the information vigorously to one another and they also participate in a two-way dialogue with the opinion leader as part of an influence network. These conversations create information cascades that occur when a piece of information triggers a sequence of interactions (much like an avalanche).

Underdog brand biography & Anthromorphism

Underdog brand biography. This includes details about a brand's humble origins and how it defied the odds to succeed. Anthropomorphism refers to the tendency to attribute human characteristics to objects or animals. frosted flakes & tony the tiger, "character brings the product to life" different from Doppelgänger brand image (one that looks like the original but is in fact a critique of it).

Behavioral Demands of Innovations

We categorize innovations by the degree to which they demand adopters to change their behavior. Continuous innovation: -Evolutionary rather than revolutionary -a modification of an existing product such as when Levi's promotes a new cut of jeans. The company makes a small change to an existing product. Most product innovations are of this type. When a consumer adopts this kind of new product, she only has to make minor changes in her habits Dynamically continuous innovation: -a significant change to an existing product. Discontinuous innovation: -Creates major changes in the way we live. Major inventions such as the airplane, the car, the computer, and the television all changed modern lifestyles

*Q: What is the basic premise of the mere exposure?

Will be on test

Hyperchoice

having too much variety or choice can handicap our processes

Carl Jung, Father of Analytical Psychology

o Disciple of Freud, but didn't accept his emphasis on sexual aspects of personality o Analytical psychology o Established concept of collective unconscious → a storehouse of memories we inherit from our ancestors o Explained the creation of archetypes • Old wise man • Earth mother o Young & Rubicam uses the concept of archetypes in its BrandAsset ® Archetypes model

Freud- Ego

o Ego= • A system that mediates between the Id and Superego and tries to accommodate both. Tries to balance the apposing forces (reality principle): it finds ways to gratify the id that the outside world will find acceptable

Freud - ID

o ID= • The immediate gratification. • Reptile, desire inside, often not embraced by society • Pleasure principle: our basic desire to maximize pleasure and avoiding pain guides behavior • The ID is Selfish and illogical

Trait Theory

o Personality Traits: identifiable characteristics that define a person o Traits relevant to consumer behavior: • Innovativeness: the degree to which a person likes to try new things Materialism:the amount of emphasis a person places on acquiring and owning products Self-consciousness: the degree to which a person deliberately monitors and controls the image of the self that he or she projects to others Need for cognition: how much a consumer thinks about the brand info Frugality: self explainatory o Not common b/c hard to measure and is not universal o Ie: testing people to be astronaut to be level headed and persistent o Bill Clinton used to know how to address different audiences o Range on table 7.4

third party advocacy

when you get a doctor to say cheerios reduce cholesterol • Through video news releases → usually for products with health benefits

Narrow attitude of acceptance

you can't win with these people

Social Class Structure

• "Haves" versus "have-nots" • Social class is determined by income, family background, and occupation.. hard to move up and most people stay in social class they were born into • UNIVERSAL PECKING ORDER: relative standing in society • Social class affects access to resources-> $, education, healthcare, etc

Figure 8.2 Types of Motivational Conflicts

• + <-approach-approach-> + • +<-Approach-Avoidance-> - o approach= want ice cream avoidance= want to lose weight • - <- Avoidance-Avoidance-> - o choosing between two bad decisions

The Power of Attitudes

• ATTITUDE: a lasting, general evaluation of people, objects, advertisements, or issues o Lasting but not permanent • ATTITUDE OBJECT (AO): anything toward which one has an attitude

Archetypes

• Archetypes: the collective unconscious of stories (characters)/ the universally recognized ideas and behavior patterns o Quick way of communicating what you want your brand to be o Northface = explorer o Avocados from Mexico= Jester o More inspirational than focusing on product traits o Lego= dreamer o Nike= warior o Laundry being sentimental → mom doing laundry for Tide → appealing to nurturer archetype

The Progressive learning model

• Assume people gradually learn a new culture as they increasingly come into contact with it • Acculturation: they blend their original culture and a new culture • Consumers who retain much of their original ethnic identity differ from those who assimilate • SOCIAL IDENTITY THEORY: who we identify w/tend to identify w/people in their group. different self for different subcultures o Fans of sports teams in Florida, most intense fans were enculturated as kids

Who makes key decisions in the family?

• Autonomic decision: one family member chooses a product • Syncretic decision: involve both partners o Used for cars, vacations, homes, appliances, furniture, home electronics, interior design, phone service o As education increases, so does syncretic decision making

Brand Personality

• Brand Personality: set of traits people attribute to a product as if it were a person o Statement about the brand's market position -Packaging is more important than ever (last marketing tool be utilized) -Label creates a brand personality that appeals to the consumer -Marketing is the start of execution of a product -snap judgements Consumer buy products that are an extension of their personality mixed reviews about standard

Balance Theory

• Considers how a person might perceive relations among different attitude objects and how he might alter attitudes to maintain consistency • Triad attitude structures (Balance Triangle): -Person -Perception of attitude object -Perception of other person/object Hire celeb b/c positive affect and works best when product and athlete makes sense Triangle shape and each needs to have a positive link to be balanced. If there is a negative link than its unbalanced Girl who doesn't like guys with earrings has to resolve imbalance in order to date a guy who has earrings

To Spend or Not To Spend

• DISCRETIONARY INCOME is the money available to a household over and above what it requires to have a comfortable standard of living • How we spend varies based in part on our attitudes toward money o TIGHTWADS: painful for people to part with cash o SPENDTHRIFTS: can't resist spending, which causes financial problems. Shouldn't do this until financially stable

Is ethnicity a moving target?

• Defining and targeting an ethic group is hard (melting pot) • DETHNICIZATION occurs when a product we associate with a specific ethnic group detaches itself from its roots and appeals to other groups as well

Consumer Confidence

• Factors affecting SAVINGS rate: • Pessimism/ optimism • World events • Cultural differences in attitudes toward savings -view debt as a way of doubling what we have

Roles in Collective Decision Making

• INITIATOR= person who brings up idea or identifies a need • GATEKEEPER= person who conduct information search and controls flow of information available to the group. On corporations it could be the vendors and products for the rest of the group to consider • INFLUENCER= person who tries to sway the outcome of the decision. Some people may be more motivated than others to get involved, and participants also possess different amounts of power to get their point across • BUYER= person who actually makes the purchase. The buyer may or may not actually use the product • USER= person who actually consumes the product or service

Attitude commitment

• INTERNALIZATION: highest level-> deep-seeded attitudes become part of consumer's value system ie: swimmer and speedo • IDENTIFICATION: mid-level-> attitudes formed in order to conform to another person or group ie; embracing brands of the environment •COMPLIANCE: lowest-level-> consumer forms attitude because it gains rewards or avoids punishments ie; going to Starbucks b/c convenient but if it moved you wouldn't go anymore

The Fashion System

• Includes all those people/organizations that create symbolic meaning and transfer these meanings to cultural goods (clothing, art, music, etc) o Fashion is CODE: helps us decipher meaning o Fashion is CONTEXT-DEPENDENT: different consumers can interpret fashion differently o Fashion can be UNDERCODED: no precise meaning rather potentially diff. meanings

Compared to Consumer Decision Making, Organizational Decision Making...

• Involves many people • Requires precise, technical specifications • Is based on past experience and careful weighing of alternatives • May require risky decisions • Involves substantial dollar volume • Places more emphasis on personal selling

The Surrogate Consumer

• Marketing intermediary hired to provide input into purchase decisions ->Interior decorators, stockbrokers, professional shoppers • Consumer gives them all control over decisions • Marketers should not overlook them when persuading consumers

***Consumer Confidence Index (test)

• No neutral • (positive/(positive+negative)) x 100 → do equation for the five categories • CCI= average of the five categories • Present situation index → Questions dealing with current state → add the scores and then divide by how n in top part • Expectation index → questions that ask about x months from now → add the scores and then dive by n in top part

Components of Social Class

• Occupational prestige o Is stable over time and similar across cultures o Single best indicator of social class • Income o Wealth not distributed evenly across classes (top fifth controls 75% of all assets) o How money is spent is more influential on class than income -occupation= best predictor of social class

Nonhuman Family Members

• Pets are treated like family members • Pet-smart marketing strategies: o Name-brand pet products o Lavish kennel clubs o Pet accessories • Spending on pets increase during recession • Not price sensitive

Membership vs. Aspirational Reference Groups

• Reference group: an actual or imaginary individual or group that significantly influences an individual's evaluations, aspirations, or behavior Membership reference groups o People the consumer actually knows o Advertisers use "ordinary people" Aspirational reference groups o People the consumer doesn't know but admire o Advertisers use celebrity spokespeople

Reasons for shopping

• Single people spend more when shopping with others • Married couples shopping together spend less, but when they're alone they spend more • Social experiences- the shopping center or department store replaces the traditional town square or county fair as a community gathering place → many people (especially in suburban or urban areas) have almost no other places to spend their leisure time. • Sharing of common interests: stores frequently offer specialized goods that allow people with shared interests to communicate • Interpersonal attraction: a place to meet friends. Shopping centers are a natural place to congregate. • Instant status: some people savor the experience of being waited on, event though the might not buy anything. (motivation is role playing as $$) • The thrill of the hunt: some people pride themselves on their knowledge of the marketplace. They may love to haggle and bargain, and even view the process as a sport.

Predicting Consumer Behavior

• Social class (more generally the overall rank of people in a society) is better predictor of lower to moderately priced symbolic purchases (cosmetics and clothes) • Income is better predictor of major nonstatus/nonsymbolic expenditures (home appliances) • Need both social class and income to predict expensive, symbolic products (cars) -Marty doesn't like architectural digest b/c it is unattainable -Higher social class shop at high-end places Basics (appliances, very functional necessities) are better to predict of income

What Are Sources of Power?

• Social power: capacity to alter the actions of others... types → Referent power: consumers voluntarily modify what they do and buy in order to identify with a referent o Person you admire/trust perception of your friend o Doesn't have to be a celebrity Information power: possess when someone knows something that others would like to know. o Able to influence consumer opinion by virtue of their (assumed) access to the knowledge that provides some kind of competitive advantage o Ie; editors of trade publications like Women's Wear Daily who can disseminate info on designers that can make or break them Legitimate power: grant power by virtue of social agreements, such as the authority we give to police officers, soldiers, and professors Expert power: influence over others due to specialized knowledge about a subject. Any sort of critic. Like a restaurant critic. Reward power: a person or group with the means to provide positive reinforcement → can be tangible or intangible Coercive power: when we influence someone because of social or physical intimidation. Power to punish. Marketers try to cement a behavior (habit forming at starbucks for morning coffee)

Characteristics of Online Communities

• The more users the better • Monetized based on numbers of users • FREE constantly improving • Sense of cyberspace community

Store image: the Store's Personality

• The stores personality composed of location + merchandise suitability + knowledge/congeniality of sales staff (Gucci Store vs Ross) • Other intangible factors affecting overall store evaluation: o Interior design o Types of patrons o Return policies o Credit availability • Ie; Anthropologie = nirvana feel because people get lost in it • Boutique format = not maximizing space and creating space

Functional Theory of Attitudes

• UTILITARIAN function: relates to rewards and punishment -> did what it needs to do, therefore you like it. Ie; like the taste of cheeseburgers • VALUE-EXPRESSION function: expresses consumer's values or self-concept • EGO-DEFENSE function: protect ourselves from external threats or internal feelings-> buying b/c validated by peers and don't want to risk being judged • KNOWLEDGE function: need for order, structure or meaning-> extensive effort to know about a product. Trying to be rational

Consistency Principle

• We value/seek harmony among thoughts, feelings, and behaviors • We WILL change components to make them consistent • Relates to the theory of cognitive dissonance - we take action to resolve dissonance when our attitudes and behaviors are inconsistent... reduce by returning product, or gathering info that justifies the products ie; car sellers calling back in a few days to mitigate dissonance Eliminate, change or add to mitigate dissonance

Reptilian marketing

•Reptilian Brain: the part of your brain where your primal instincts kick in, it wins when making purchasing decisions -Frenchman believes that the best way to convince people to buy things is through a journey into their childhood -Examples: Folgers: Scent of coffee (even from a early age plays a role in customer purchases) Bounty: Mom's "primal instincts" of nurturing/cleaning) Reptilian marketing → finding what the Id wants o 60 minutes video o to be successful, appeal to our earliest memories o PT cruiser you either love or hate, no mutual, and you want this intensity of emotion o Discovering the reptile → need for survival and comfort o "the code" → the hot button to a product o * the reptilian is equal to Freud's Id