3930 Exam 1
Attitude Formation: Balance Theory
-Preserve consistency in relations among attitude objects -The consistency principle generally deals with beliefs about an attitude object, but also includes other attitudes -Balance theory is an attempt to provide structure to how people maintain balance when inconsistencies, or imbalances arise -Structure: Triad • Person and perception of 2) an object and 3) some other object • Why do people vote all republican or democrat without considering the candidates? • Some people "swear by [insert brand name here]" Imbalance in Balance Theory -A consumer really likes Nike shoes -The consumer learns about child labor in Nike factories overseas -The consumer is strongly opposed to child labor -What will the consumer do? -Balance theory does not predict the response, but that the consumer will change an attitude to achieve balance. -Maybe the consumer will no longer like Nike, or justify child labor by arguing that the kids are earning money and in a better position than they were before
Attitude Formation: Consistency Principle
-Principle of cognitive consistency • People value harmony among thoughts, feelings, and behaviors, and a desire to maintain uniformity is strong • Change thoughts, feelings, or behaviors to make them consistent with other experiences • Why is there such a push to buy local? • Does it matter to you that some of your clothes are made using child labor? -Theory of cognitive dissonance • People take actions to preserve consistency with their attitudes or behaviors • If you are against child labor, then will you get rid of all goods made with child labor? • If you are against GMOs, will you do everything you can to avoid these goods?
Chapter focus
-Process of absorbing sensations and then using them to interpret the surrounding world -Sensation • Immediate response of our sensory receptors to basic stimuli such as light, color, sound and texture -Perception • Process by which people select, organize and interpret these sensations • In other words, what we add to the sensations to give them meaning in our own lives.
Power and pitfall of repetition
-Repetition increases learning -More exposures = increased brand awareness -When exposure decreases, extinction occurs -However, too MUCH exposure leads to advertising wear out • Example: Izod crocodile on clothes
Memory Retrieval
-Retrieval: Process in which consumers recover information from long-term memory -Spacing effect: Periodic exposure over extended time period as opposed to rapid repetition in short time period- consider "cramming" for an exam. -Advertising content • Extraordinary ads • Strong associations—emotions
Consumer-Brand Relationships
-Self-concept attachment-the product helps to establish identity -Nostalgic attachment-the product serves as a link with the past self -Interdependence-the product is part of the user's daily routine -Love- the product elicits emotional bonds of warmth, passion or other strong emotions
Memory Systems
-Sensory memory • Stores information from senses - temporary, couple of seconds at most • Can signal response for further information processing - transfer to short-term memory -Attention -Short-term (working) memory (RAM) • Limited capacity • Holds information we are currently processing • Information is stored here as chunks - configuration familiar to the person • Store 3-4 "chunks" at a time -Elaborative Rehearsel -Long-term memory • ROM - retain information for a long period of time • Elaborative rehearsal allows information to flow from short-term to long-term memory • Processing a stimulus and relating it to other information already in memory
Spreading Activation
-Spreading activation allows us to shift back and forth among levels of meaning • Brand-specific - storage based on claims made by the brand • Ad-specific - storage based on associations made based on message • Brand identification - storage based on brand name • Product category - storage based on product function of situational usage • Evaluative reactions - storage based on positive or negative reactions -How something is stored often depends on its initial meaning
Forms of Recall
-State-dependent recall-same situation as when encoding information increases chance of recall -Familiarity and recall • Automatically-limited processing when familiar with message or product -Salience and recall • Prominence in memory • Von-Restorff effect-increase novelty, improve recall (unusual content in ads) • Mixed vs. Unipolar emotions -Viewing context • If we like the show we are watching, we are more likely to recall information from an ad (Strong for life-style programs) • Hybrid ads mention the program during which the ad is aired- increases recall -Pictorial vs. verbal cues • Recall is improved with pictures, but this medium isn't necessarily better (relative to verbal) for comprehension
Stimulus Generalization
-Stimulus generalization: tendency for stimuli similar to a conditioned stimulus to evoke similar, unconditioned responses. • Family branding - reputation of a company name • Product line extensions - add related products to an established brand o Dole produces fruit, fruit bars, and juices o Graeter's is now producing beer - black raspberry chocolate chip milk stout • Licensing - "rent" well known names; completely different product lines from original • Look-alike packaging - imitators use similar packaging o Consumer confusion o Stimulus discrimination to eliminate confusion
Our minds are powerful
-System 1 • Instinctive -System 2 • Cognitive, deliberate
Consumer behavior measured through technology
-Technology and culture create a new "always on" consumer. -Instant communication -Gamification -"Cloud" technologies • Storage • Collaborations
Semiotics
-The field of semiotics helps us to understand how marketers use symbols to create meaning -Study of the correspondence between signs and symbols and their roles in how we assign meanings -Semiotics asserts 3 components in marketing messages • Object - focus of message - the product • Sign - sensory image representing intended meaning • Interpretant - Meaning we derive from the sign
Taste
-The first thing babies do with something they hold is put it in the mouth -Companies specialize in determining what flavors consumers like best -Cultural factors influence what consumers think tastes good -Our palates were designed to "prefer" certain tastes • Salty-we need salt to survive • Sweet-source of nutrients
Key concepts in use of touch
-Touch (haptic) sense matters • Can be viewed as a primal language...learn well before we speak • Children like to touch things (and taste) to determine its usefulness -Kinsei Engineering • Translate feelings and emotions into design elements • Auto makers design cars to feel like "extensions of body" • Some cars have driver seats that situate the driver's hips in such a way that the driver feels above smaller cars around them-very popular in SUVs, trucks and minivans.
Third Stage of Perception: Interpretation
-We interpret the stimuli to which we do pay attention according to learned patterns and expectations. -Interpretation refers to the meaning we assign to sensory stimuli, which is based on a schema • The meaning we assign to a stimulus depends on the schema, or set of beliefs, to which we assign it -Stimulus organization • Relationship we assume it has with other events, sensations, or images in memory -Interpretational biases • Brains relate incoming sensations to others already in memory
Disciplines in consumer research
Macro consumer behavior (social focus)<--Cultural anthropology, History, Demography, Semiotics, Macroeconomics, Sociology, Social physiology, microeconomics, Human ecology, Developmental psych, Clinical psych, Experimental psych--> Micro consumer behavior (individual focus)
Classifying consumer needs
Murray's psychogenic needs ¥ Autonomy, defendence, play ¥ Basis for many personality tests Specific needs ¥ Need for Affiliation - we are social beings ¥ Need for Power - we have mastery over our environment ¥ Need for Uniqueness - assert individual identity
Perspectives in consumer behavior: Positivist Approach
human reason is supreme and there is a single objective truth that science can discover o Stress function of objects, celebrate technology, and consider the world as rational with a clearly defined past, present and future
What types of content do marketers include in advertisements to achieve their objective?
o Content conveying price, quality, features, situational associations, sensory appeal o Content that captures attention and has no other value • High involvement medium o Print - readers have more time to sit and think (if they want) • Low involvement mediums o Television advertisements - viewers are more passive
Perspectives in consumer behavior: Interpretivist approach
society emphasizes science and technology too much and the ordered, rational view denies/ignores the complex world in which we live. o Stress importance of symbolic, subjective experience, and that meaning is in the mind of the person - relative o Consumption offers experiences, not function
Consumer Behavior
the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.
Classifying Consumers needs
¥ Needs vs. Wants ¥ Need for affiliation ¥ Need for power ¥ Need for uniqueness
Affect and Types of Affective Responses
• Affect: Raw reactions or emotional responses to products -Positive Affect • Lovemark - passionate commitment to one brand • Happiness • Material accumulation -Negative Affect • Disgust • Envy • Guilt • Embarrasment • Evaluations - positive or negative reactions to events and objects that are not accompanied by high levels of physiological arousal • Moods - temporary positive or negative affective states accompanied by moderate levels of arousal; generally diffuse and not tied to any specific thing • Emotions - more intense and often relate to a specific triggering event • Negative State relief - relieve your own negative affect state - maybe through helping others • Sadvertising - inspirational stories that send our emotions on roller coasters • Emotional Oracle effect - interplay between emotions and now we access information in our minds. Those who trust their feelings are better able to predict future events • Mood Congruency - Our judgments tend to be shaped by our moods
Methods of storage
• Associative networks - The other products we associate with an individual product influence how we will remember it. - In an associative network information gets stored based on bits of related information • Spreading activation • Levels of knowledge
Methods in understanding consumer behavior
• Big data • Pop culture • Consumer-brand relationships
Note on Brand Loyalty and Variety
• Brand loyalty o High level of involvement o Consumers purchase the same brand to fulfill a specific need o When brand is unavailable, consumers seek it out instead of settling on an alternative • Variety seeking o In contrast to brand loyalty, consumers often seek variety o While consumers have a preferred brand, they might seek new experiences with different products o But in cases of limited time or stress consumers tend to fall back on the preferred brand • Perceived Variety o Even when the number of options are the same, marketers can increase sense of variety, thus increasing consumption o The key is to present options in an organized fashion to make it seem like variety is greater
Key points in Gladwell's talk
• Consumers don't always know what they want (Stated vs. revealed preference) • Horizontal segmentation: means selling a product to a wide spectrum of consumers • Platonic dish does not exist-no perfect way to make a product or design a service
Maslow's hierarchy of needs
(lower level needs) Physicological-Water/sleep/food, Safety-Security/Shelter, Belongingness-love/friendship, Ego needs-prestige/status, Self-actualization-self-fufillment
The Involvement Continuum
-"A person's perceived relevance of the object based on their inherent needs, values, and interests" Habitual Decision Making (Low level (Inertia) Household cleaners etc.) -Cognitive Decision Making -Emotional Decision Making -Big ticket items Conceptualizing involvement chart Types of Involvement -Product- Consumer's level of interest in a particular product. The more closely marketers can tie a brand to an individual, the higher the involvement. -Message- Consumer motivation to pay attention to the information marketers convey, such as in advertisements. -Situational- This level of involvement takes places in stores, on web sites, or where consumers purchase goods and services.
Stage 1: Key concepts in Exposure
-Absolute threshold (no recognition to recognition) • Minimum amount of stimulation registered on a given sensory channel • Dog whistles are too high pitched for our ears to detect • Some argue that taxes on soft drinks need to be at 20-30% to make any difference on demand -Differential threshold (difference in two stimuli) • Ability of a sensory system to detect changes in or differences between two stimuli -JND - just noticeable difference ¥ Minimum detectable difference between two stimuli ¥ Donate up to the nearest dollar... -If/when differences are noticed • For various reasons, marketers might want consumers to notice, or not notice differences
Big Data
-Database Marketing -Ex: Amazon, "People who purchased this product also viewed..." -Tracking consumers' buying habits very closely, and then crafting products and messages tailored precisely to people's wants and needs based on this information. -Relationship Marketing -The strategic perspective that stresses the long-term, human side of buyer-seller interactions.
Forgetting
-Decay- loss of memory over time -Interference- new information replaces old information • Retroactive interference- consumers learn new responses to stimuli that replace old responses to the same stimuli • Proactive interference- prior information is at odds with new information
Perceptual Process: Key concepts in Exposure
-Exposure: "We notice stimuli that come within range for even a short time-if we so choose" (p.86) • We are "exposed" when a stimulus comes within range of someone's sensory receptors • To understand exposure, we need to understand what individuals are capable of recognizing -Sensory threshold • Some individuals are not aware of specific stimuli, simply because they are not capable of recognition o Color blind o Hard of hearing o State of cognition - I notice what I want to see (potentially miss out in important things)
Conditioning
-Feedback we receive shapes experiences -Respond to various stimuli, such as brand names, scents, etc., based on previous experiences • If it is new, often we associate it with something else similar to it -Learning from rewards and punishments -Two types of conditioning • Classical • Instrumental conditioning
Reinforcement Schedules
-Fixed-interval - after specified time has passed, first response brings reward • Seasonal sales -Variable-interval - time that must pass before reinforcement varies based on an average • Secret shoppers -Fixed ratio - reinforcement occurs after fixed number of responses • Bottle caps, number of visits to store, etc. -Variable ratio - reinforced after certain number of responses, but number of responses unknown • Gambling
Measuring Memory for Marketing Stimuli
-For television viewers, recall is not strong -For online ads, such as before YouTube videos, recall is much stronger (maybe because we often have the chance to skip the ad, so if we watch it, it means we wanted to) -Recognition versus recall • Recall is important in situations where product information is not readily available • Recognition tends to be stronger since it requires less information retrieval, i.e., more cues for recognition -Problems with memory measures • Response biases • Memory lapses (problematic for recall) o Omitting (leaving facts out) o Averaging (normalize memories- not report extreme cases) o Telescoping (inaccurate recall of time)
Marketing applications of instrumental conditioning principles
-Frequency marketing • Rewards programs -Gamification • Add gaming elements to routine or mundane tasks • Earning game-like rewards for specific behaviors
Stimulus Organization
-Gestalt: the whole is greater than the sum of its parts • Closure: people perceive an incomplete picture as complete • Similarity: consumers group together objects that share similar physical characteristics • Figure-ground: one part of the stimulus will dominate (the figure) while the other parts recede into the background (ground)
Marketers' messages are more effective when they appeal to several senses
-Hedonic consumption • Multisensory, fantasy, and emotional aspects of consumers' interactions with products -Contextual effects • Sensations that subtly influence how we think about products
Types of signs
-Icon • Resembles the product in some way -Index • Connects to a product because they share some property -Symbol • Relates to a product through conventional or agreed-on associations
Levels of Knowledge
-Information is coded at different levels of abstraction and complexity • Meaning - stored as individual nodes in memory network • Proposition - link two nodes together to serve a information • Schema - integrated propositions to form a cognitive framework o new information consistent with a schema is processed much more rapidly • Script - sequence of events expected to occur o Deviations often lean to discomfort or confusion
Cognitive Learning Theory
-Internal mental processes are important • What goes on in the "black box" matters • Responses to stimuli are functions of cognitive processes, not simply automated responses to external stimuli • In other words, individuals strive to master their surroundings -Conscious vs. Unconscious • Not clear where the divide is...very difficult to study the unconscious mind...subject of substantial debate -Learning is part of a cognitive process, not only a stimulus-response mechanism -Learning through observation -We learn at a very young age
Scent
-Like color, odor can also stir emotions and memory. -Scent Marketing is a form of sensory marketing that we may see in perfumes, detergents, automobiles, and more.
Classical Conditioning-->Associations
-Long-term effects of classical conditioning • Repetition - can strengthen stimulus-response associations o Overexposure - too many associations for one symbol • Stimulus generalizations - tendency of similar conditioned stimuli to evoke similar conditioned responses • Stimulus discrimination - unconditioned stimulus does not follow a stimulus similar to a conditioned stimulus -In marketing, associations are crucial for strategies that rely on brand equity - value of brand to a consumer
Vision
-Marketers communicate meaning on a visual channel using a product's color, size, and styling. -Color • Red-stimulate appetite, excite emotions • Blue-calming influence (culturally similar) -Difference across demographics • Black (mourning, power, sophistication) • White (Purity, mourning) • Bright colors-older individuals • Females better able to detect colors
Memory
-Memory is the process of acquiring information and storing it over time so that it will be available when we need it. -Our brains process information about brands to retain them in memory. -Information processing approach - our minds are like computers Stages of Memory -Encoding • Mental programming of incoming information • Types of meaning o Sensory meaning - e.g., literal color or shape of packaging o Semantic meaning ♣ Episodic memories - relate to personally relevant events ♣ Narrative - description of a product written as a story - more likely to positively evaluate and purchase when we connect in this way • Memory Systems o Sensory memory o Short-term memory o Long-term memory
Subliminal Advertising
-Messages often escape our senses, so that we are not "exposed" through our immediate senses, but we might pick up a message subconsciously -Subliminal advertising is a controversial, and largely ineffective, way to talk to consumers -Subliminal perception • Stimulus below the level of consumer awareness • Embeds - hidden images • Does it work? o In very specific cases, there is some evidence o Not for mass media
Motivational Direction
-Motives have direction and strength -- they are goal oriented but there are many routes to achieving the goal. Objective is to convince people the product, situation, or idea will help best achieve the goal. -Needs versus wants • Needs - basic goal such as eating or sleeping • Wants - specific pathway to achieving the goal • Utilitarian - emphasize the objective, tangible attributes of products • Hedonic - subjective and experiential. Products meet needs of excitement, self-confidence, or fantasy
Five Types of Perceived Risk
-Objective 1.) Monetary Risk o Risk capital - money and property o Cars, homes, expensive appliances o Savings decisions 2.) Functional Risk o Risk capital - alternative means of performing the function o Phones o All-in-one computers - more difficult to replace individual components o Specific diets or workouts (will they really work?) 3.) Physical Risk o Risk capital - physical vigor, health, and vitality o Specific high intensity workouts o Calorically dense and nutrient poor foods o Homes with stairs (difficult for older folks to walk up and down) -Subjective 1.) Social Risk o Risk capital - self esteem and self confidence o Clothes o Jewelry o Cars\Other socially visible goods 2.) Psychological Risk o Risk capital - affiliations and status o Management plans, such as health or money, requiring self discipline o Big purchases that leave you with buyers remorse
Important things to consider about learning
-Our paradigms are powerful -Communication is essential to learning • Often we want someone to understand us, so we must be effective communicators Old adage: Seek first to understand, then to be understood
Attitude Formation: Self-Perception Theory
-Own observations of behavior reveal to us what our attitudes are • No previous experience or attitudes towards object • Alternative to cognitive dissonance theory o We believe our attitudes are based on observed behavior - we purchase something, therefore we must like it o "Fake it 'till you make it" • Example: I must love to drive old beaters because that is what I own. -Foot-in-the-door technique • Customers are much more likely to comply with big request after compliance with a smaller one. • Telemarketers often will ask for a relatively small donation, then increase the amount o Begin with $35, and if you say yes, then they will press and say, for only $10 more could you do $45? o Asking for $45 initially might seem like too much, so they begin small and inch upwards • Once we say yes, it is much more difficult for us to say no • Sales people will often say, just let someone come by to give you a free estimate, then you can say no if you don't want it. o But, these sales people are trained, and it is hard to get them off your back, so people often comply
Conditions Product Associations
-Pairing a product with a positive stimulus, such as music, humor, or imagery to create a desirable association • ...even when the association is not real -Challenge for marketers is to keep novel associations to avoid extinction of the response • Especially challenging for common goods
Attitude Formation: Social Judgment Theory
-People assimilate new information about attitude objects based on what they already know or feel • New information about object is in reference to initial attitude o We might actually reject new information if it is not consistent with our initial attitude • Latitudes of acceptance: we have some range of what we consider acceptable information regarding the object. • Assimilation effect says this latitude often results in individuals accepting information, messages, situations, objects, they would not have otherwise o Consider movie ratings: what used to be R is now probably PG or PG-13 • Contrast effect says that as we become more involved with an object, our latitude of acceptance shrinks o Brand loyalty is extremely valuable
Perception
-Perception is a three-stage process that translates raw stimuli into meaning -Exposure -Attention -Interpretation
Sensation and Perception
-Perception is the process by which sensations are selected, organized, and interpreted. -We process the stimuli to help us male "informed" decisions. -Not all stimuli are noticed by consumers, of those that are, consumers process even fewer. • In other words, we are selective about the what stimulates our senses • A consumer's own experiences, biases, and needs factor into the stimuli that influence the individual
Pre-purchase framework
-Perceptions-->the way in which we begin to develop an understanding of products, situations, people, and ideas -Learning and memory-->how our minds process and retain information -Motivation and affect--> how we determine what we need and feel about products, situations, people and ideas -Attitudes and persuasion-->How we form stronger tastes and preferences
Factors affecting Attention
-Personal Selection • Experience -Perceptual filters • Perceptual vigilance - more likely to be aware of stimuli that relate to current needs • Perceptual defense - tend to see what we want to see, or skew meaning to fit our own beliefs -Adaptation - we experience events more intensely at first then get used to them • Intensity - more prone to adapt to less intense stimuli • Discrimination - more prone to adapt to simple stimuli - limited detail • Exposure - adapt to frequent stimuli • Relevance - irrelevant or unimportant stimuli lose effectiveness -Stimulus Selection • Contrast • Size - bigger, more noticeable • Color - colors that standout, for good reason • Position - eye level, golden triangle on computer screens • Novelty - unconventional places...interruptions
How does instrumental conditioning occur?
-Positive reinforcement - choose behaviors to gain reward -Negative reinforcement - choose specific behavior to avoid unpleasant outcome -Punishment - the outcome from not choosing the "right" behavior • Note well: -Positive and punishment - individual experiences a reaction after an action -Negative - avoid negative outcome -When stimulus-response is gone for positive reinforcement, connection will not be maintained
Stages in the consumer process
-Pre-purchase issues, Purchase issues, Post-purchase issues
Learning to be consumers begins early
-Consumer socialization • How young people obtain the skills and knowledge they need to engage in the market place -Parents, who act as role models, can be instrumental in developing brand loyalty in kids • Parental views about the market place and consumption behaviors are often passed down
Components of Attitudes: The ABC Model
-Affect • How do we feel about an attitude object? -Behavior • Intentions to take action about the attitude object • ...Intentions don't always lead to actions -Cognition • What we believe to be true about the attitude object -Emphasize the interrelationships between knowing, feeling, and doing • Knowing all 3 helps us understand behavior o we can know someone's beliefs, but without knowing behavior, we don't know if the beliefs lead to action Hierarchies of Effects -Which of the ABC's comes first? -Standard learning hierarchy • Think Feel Do • High involvement • First form beliefs, evaluate beliefs and forms a feeling about the product, then engage in the relevant behavior • What attitude objects might fall in this category? -Low-involvement hierarchy • Do Feel Think • No strong initial preferences - act on limited knowledge and form evaluation only after purchase - good and bad experiences reinforce initial choice • Habitual decision making • Stimulus-response connections • What attitude objects might fall in this category? -Experiential Hierarchy • Feel Do Think • Act on basis of emotions • Intangible product attributes, such as packaging, brand, context of experience with product influence attitude • Affective decision making - hedonic consumption • What attitude objects might fall in this category
Demographics
-Age -Gender -Family structure -Social class/income -Race/ethnicity -Geography
Second Stage of Perception: Attention
-Attention is the extent to which processing activity is devoted to a particular stimulus • Once we are exposed to a stimulus, how much attention do we pay to it? -Sensory overload • We are exposed to far more information than we can process, or that we choose to process -Media snacking • Consumers in their 20s switch media venues about 27 times per non-working hour - kind of like media snacking, or grazing • Marketers have to communicate with short, snack-like messages -Our capability to process information is limited • Perceptual selection - selective attention to exposed content
Attitude
-Attitude: a lasting, general evaluation of people (including oneself), objects, advertisements, or issues. • We can consider attitudes as complex preferences • Attitudes lead to our decisions -We can form attitudes about anything -Attitudes are not easily changed - often require lots of persuasion • Momentary events often do not change attitudes, though extreme events might, or events that consistently happen over time -An attitude object is something for which we have developed an attitude • There are probably many things for which we have not developed an attitude...maybe something we don't know exists, or that we haven't ever considered
Attitude Formation
-Attitudes are formed in many ways • Repeated exposure/consumption • Classical or instrumental conditioning • Social pressure • Best value • Habit • Knowledge Attitude Formation: Heterogeneity in attitude types -Along a spectrum, individuals differ in how "attached" they are to their attitudes -From low involvement to high involvement: • Compliance - attitude formed to gain reward or avoid punishment o Superficial attitude, likely to change when stimulus is gone • Identification - conformity - avoid dire social consequences o E.g. support for Trump associated with uneducated white supremacists • Internalization - attitudes become part of values or self image - highest level of involvement o Very deep seeded attitudes, hard to change
Key concepts in use of sound
-Audio watermarking-using specific sounds to suggest sensations from product use -Sound symbolism- the process by which the way a word sounds influences our assumptions about what it describes and attributes, such a size. -Phenomes-certain vowel and consonant sounds drive perceptions.
Parent Socialization Styles
-Authoritarian parents - emotionally uninvolved with kids, very restrictive -Neglecting parents - detached from kids -Indulgent parents - less restrictive, believe kids should be allowed to make their own decisions -Involved parents- emotionally involved, teach children benefits and dangers of market place, provide opportunities for independent decision making, but reinforce values
Theories of Learning
-Behavioral learning-->theories focus on stimulus-response connections -Cognitive theories-->focus on consumers as problem solvers who learn when they observe relationships -Basic learning-->principles are at the heart of many consumer purchase decisions
Mindless Eating Discussion
-Chapter 1 • We look for signals or cues to know we have eaten enough • Popcorn experiment - eat more than we think just because it is there, because of scripts, because others are eating - we can engineer these cues out of our lives • Wine label experiment - label generates a taste perception that can carry over to our food • Anchoring - 1 for $1 vs. 2 for $2 • Deprivation diets don't work - 1) bodies fight against; 2) brains fight against; 3) environments fight against • Mindless margin is a 100-200 calorie margin where don't notice the difference (falls under the JND) • Think 20% less (high calorie food), or 20% more (fruits and vegetables) Chapter 2 -We eat with our eyes, not our stomach • Wings experiment -We eat the volume we want • Bottomless bowl -We underestimate the calories we eat Chapter 3 • People eat 92% of what they serve themselves • Eat 20% more or less without even realizing it • Who is in the clean plate club? • More variety means more calories • Short, fat glasses means more calories, relative to skinny and tall glasses
Cognitive Development
-Children pass through general stages of cognitive development • Limited - under age 6 - do not employ storage and retrieval strategies • Cued -- between 6 and 12 - employ these strategies when prompted • Strategic - 12 and older - use these strategies without prompts -Children do not think the same as adults, perceptions are much more malleable • Children are more likely to believe fictional situations in advertisements and consider fictional characters real -Given cognitive limitations in children, is advertising to them ethical?
Classical Conditioning
-Components of Conditioning • Unconditioned stimulus - generates response • Conditioned stimulus - stimulus that initially generates no response • Conditioned response - result from stimulus -Conditioning Issues • Repetition - conditioning is stronger after repeated exposures • Extinction - too frequent exposure of conditioned stimulus (brand logo) without the unconditioned stimulus • Stimulus generalization - halo effect • Stimulus discrimination - unconditioned stimulus does not follow conditioned stimulus
Learning: Stimulus-Response
-Conditioning results in learning. -Behavioral learning theories assume that learning takes place as the result of responses to external events -The mind of a consumer is a "black box" - focus on observable aspects of behavior
Persuasion (Principles of Persuasion, The source)
-Within this framework, the art of persuasion is to influence an attitude to the degree that a desired behavior is realized Principles of Persuasion -Reciprocity - do unto others... -Scarcity - get it before it is gone - wine store in WA that is open only once a year -Authority - experts ...cheap talk... -Consistency - consider self-perception theory -Liking - we are more agreeable with those we like • Similar - we like those who are similar • Complimentary - we like those who pay us complements • Cooperative - we like those who are cooperative -Consensus - external validation Persuasion-the source -Source credibility - expertise, objectivity, trustworthiness • Is the communicator trust worthy? • Why do political candidates tear each other down? • Why do lawyers try to find flaws in witnesses? • Third-party evaluations are often used to signal a communicator's credibility • Disclaimers - fast comments about a product at the end of an ad (small print..) can lead people to trust less • Native advertising - online ads blend into editorial content, but are promoting a specific product • Knowledge bias - inaccurate knowledge from the source • Reporting bias - informed communicator, but information conveyed in a biased manner • Effective • Attractiveness - appearance, personality, social status, or similarity to recipient o Value attributed to the communicator o Halo effect - smartness, ability, and happiness are often correlated with attractiveness o Generally effective -Celebrities - famous individuals, or renowned experts are well known credible sources • Celebrities often embody cultural meanings - symbolize important categories like status and social class • Effective, though celebrities can be difficult to work with -Nonhuman endorsers - Chester Cheetah, GEICO Geko, Tucan Sam • Easier to manage...and effective
Chapter overview
1. It's important for marketers to understand how consumers learn about products and services. 2. Conditioning results in learning. 3. Learned associations can generalize to other things and why this is important to marketers. 4. There is a difference between classical and instrumental conditioning. 5. We learn by observing others' behavior. 6. Our brains process information about brands to retain them in memory. 7. The other products we associate with an individual product influence how we will remember it. 8. Marketers measure our memories about products. 9. Products help us to retrieve memories from our past
Heavy Users
A name companies use to identify their customer's who consume their products in large volumes.
Observational Learning
Attention-->Retention-->Production Process-->Motivation--> Observational Learning -Modeling is the process of imitating the behavior of others
Attitude Formula
Attribute models and observed behavior -These models don't perfectly predict behavior -Some disciplines heavily rely on observed behavior and assume the behavior reveals preferences (e.g. economics). -Yet, some people may claim they want to engage in certain behavior, but don't always do so (eating cake while "dieting"). Attribute models-common problems -Do not perfectly predict behavior -Outcomes might be beyond control - I want to hike Everest, but too costly -Behavior might not be intentional - mindless choices -Time frame - attitude measures taken well before a behavior might lose accuracy -Attitudes are stronger when developed through personal experience -Cultural differences are ignored -Consumers might not be thinking forward as the model assumes -Assumption that consumers are in complete control of actions See powerpoint for formulas
Minolta Understands Perceived Risk
Higher involvement when consumer believes there is perceived risk -Perceived risk is greater when: • Negative consequences for choosing wrong option • Product is expensive or complicated • When we are concerned about what others think of our choice...did I pick the wrong shirt?
Persuasion-the message
Persuasion-the message -Messages that consumers did not like... • The commercial shows a sensitive product (e.g., hemorrhoid medicine) and emphasizes its usage. • The situation is contrived or overdramatized. • A person is put down in terms of appearance, knowledge, or sophistication. • An important relationship, such as a marriage, is threatened. • There is a graphic demonstration of physical discomfort. • The commercial created uncomfortable tension because of an argument or an antagonistic character. • It portrays an unattractive or unsympathetic character. • It includes a sexually suggestive scene. • The commercial suffers from poor casting or execution. -Important points to consider for a communicator • Should the message be conveyed in words or pictures? - message for high involvement situations; picture for low involvement • How often should the message be repeated? - fine line between familiarity and boredom - limit exposure per repetition, e.g., 15 minute spots • Should the message draw a conclusion, or should this be left up to the listener? - depends, hard to say... • Should the message present both sides of an argument? - depends • Should the message explicitly compare the product to competitors? Can be helpful and hurtful Common message types -Emotion vs rational • Difficult to know whether to appeal to head or heart, depends on product and on consumer attitudes -Sexual appeals • Catchy, but generally ineffective when merely used to grab attention -Humor appeals • Catchy, but not clearly a strong influence on attitudes -Fear appeals Moderate threats work best, especially when presented with a solution
Maslow's Hierarchy of needs
Physiological (Water, Sleep, food)-->Safety (Security, Shelter)-->Belongingness (Love, Friendship)-->Ego Needs (Prestige, Status)--> Self-Actualization (Self-fufillment, Enriching Experiences)
How did Howard Moskowitz revolutionize the food industry?
There is a variation in what people prefer
Functional Theory of Attitudes
Utilitarian function • Principles of reward and punishment • Attitudes formed based on pleasurable/painful experiences with the object • Drink diet coke "just for the taste of it" -Value-expressive function • Relate to a consumers self concept - what does the product say about you as a person? • Also relates to a person's central values -Ego-defensive function • Protect ourselves from external threats or internal feelings • Early marketing study found that housewives resisted instant coffee because it threatened their belief about themselves as capable homemakers • People might resist technological innovation because it threatens their jobs and livelihoods...such as machine automation -Knowledge Function • Attitudes formed to provide order, structure, and meaning • Applies when a person is in an ambiguous situation, such as interaction with a new product or situation
80/20 Rule
a rule-of-thumb in volume segmentation, which says that about 20 percent of consumers in a product category (the heavy users) account for about 80 percent of sales.
Motivational Strength
• Drive Theory - biological needs that produce unpleasant states of arousal...thirst while exercising o Homeostasis - balanced state...people generally like to feel comfortable o Retail Therapy - some research suggests that shopping restores a sense of personal control over one's environment and can eliminate feelings of sadness • Challenges to drive theory - forego comfort (homeostasis) for something in the future o Save for retirement o Exercise Dieting - resist cravings for unhealthy foods • Expectancy Theory o Expectations of obtaining desirable outcomes motivates us o In contrast to drive theory, expectancy theory suggests that the motivation is external - we are driven by incentives - instead of internal and biological • Challenges to expectancy theory o Consumers may not know what to expect o Some people like taking risks...it is the thrill of not knowing that motivates them o Assumes all people are forward thinking o Some goods do not provide immediate benefits, and it is often difficult to determine if the goods produce any benefit at all (creedence goods). Think about treatments for different illnesses... • Differences between drive and expectancy theory o Drive theory says we go to purchase something to satisfy a biological need without any specific indication of the product o Expectancy theory provides clearer indication of what we may consider purchasing o Drive theory says our motivations are biological o Expectancy theory says our motivations are based on external incentives - expectations for future benefits o Drive theory cannot explain why people forego consumption or create greater biological needs, such as with exercise o Expectancy theory says people engage in these acts to achieve an expected benefit
How Social Media taps into our emotions
• Happiness economy: The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth. Happiness economics attempts to use econometric analysis to discover what factors increase and decrease human well-being and quality of life. • Sentiment analysis • Word-phrase dictionary
The Motivation Process: Why Ask Why?
• Motivation - processes that lead people to behave as they do o Utilitarian o Hedonic • Goal - desired end state • Incidental brand exposure o Respond to brand names without even realizing it
Factors that increase message involvement
• Novel stimuli o Unusual cinematography o Sudden silences o Unexpected movements • Prominent stimuli o Loud music o Fast action • Celebrities o Product placement in movies can be effective • Provide value appreciated by consumers • Invent new media platforms to grab attention • Create situations where message is a form of entertainment
Theory of Cognitive Dissonance
• People have a need for order and consistency • Dissonance exists when there is tension between beliefs or behaviors • Cognitive dissonance reduction is way to reduce the tension through learning more about product or ideas, or convincing ourselves there is no tension o I deserve to eat that tub of ice cream o Postdecision dissonance o Choose between two products, both with good and bad qualities o Try to convince yourself that what you chose is better than what you didn't choose
Additional Concepts under interpretation: Perceptual positioning
• Perception of a brand comprises of functional attributes and symbolic features • Positioning strategy - using elements of marketing mix (price, product design, messaging, etc.) to influence interpretation of meaning in marketplace relative to competitors
Additional Concepts under interpretation: Hyperreality
• Process of making real what is initially simulation or hype • Invent connections between products and benefits (though these benefits are not necessarily true)
What are labels good for?
• Quick packet of information • Modifying perception • Learn about the product • Reduce search costs
Motivational Conflicts vs. Reinforcement Schedules
• Reinforcement schedules (based on instrumental conditioning) are external • Motivational conflict is internal to the consumer
Weber's law
• Stronger the initial stimulus, the greater the change must be for a consumer to notice it • Taxes/subsidies/discounts on foods or other goods • Selling add-ons, or products lining the check-out line
