402 FINAL

Which attribute contributes the most to difference in the ratings of the two brands? Why?

"Cost" because it has the largest difference, meaning the Rav doesn't compare to the Land Rover.

What are three ways to get consumers' attention?

(1) Make stimuli personally relevant. Ex- appeal to values, needs, goals "Old Spice ad". (2) Make stimuli surprising. Ex- novelty, using a puzzle. (3) Making stimuli easy to process. Ex- prominent, concrete, and contrasting stimuli.

License plate holders for cars and merchandise received for participating in sponsored events such as triathlons or other races are examples of:

****Freebies**** In-store shelf space Non-traditional product placement

Which is not true about consumers' attention?

***It cannot be divided*** It is limited It is selective

Negative reinforcement

-When consumer engages in behavior, something bad stops happening -Behavior → removes aversive consequence → increase probability of behavior -Ex: take advil for headache-> headache goes away-> take advil for headache again -Ex: annoying sounds inside car stops when seatbelt is fastened, cigarette craving, goes away once you have one

Positive reinforcement

-When consumer engages in behavior, something good happens -Behavior → positive consequence → increase probability of behavior -Ex: Fly american -> get upgraded to first class-> fly american again -Ex: loyalty program

Attitudes

-a psychological tendency that is expressed by evaluating a particular entity with some degree of favor or disfavor -Attitudes guide our thoughts, influence our feelings and affect our behavior -Attitudes are not perfect predictors of behavior

Strategic underpinnings of experiential marketing

-sense - bath products -feel - Thai life insurance commercial -think - drunk driving ads -act - Nike "Just do it" -relate - shelter commercial

Exemplar

-single best representation of a category -Consumers try to understand new products by fitting them into their existing schema.

Evident culture

-things can be observed and described; customs, language, behavior -When you go to a foreign country and see people doing stuff

Deep culture

-underlying aspects of culture; values, view of the world, beliefs -Driving the actual belief

What leads to forgetting?

-we forget when information is not encoded properly

Sensory Memory

0.5 - 3.0 second duration; takes a snapshot; initial recording; unlimited capacity; takes exact record of everything one is exposed to; limited duration

What are the four steps of the pyramid of corporate social responsibility?

1. Philanthropic - be a good corporate citizen 2. Ethical - be ethical 3. Legal - obey the law 4. Economic - be profitable

Webers Law

7/11 example The higher the initial level of an attribute, the greater the amount that attribute has to change before people will notice the difference.

What is Native advertising? How does it work?

A form of paid media traffic source where the ad experience follows the natural form. It is bad because it brings brand confusion.

What is a perceptual map?

A graphical representation of how consumers perceive brands.

Locus of control

A person with an internal locus of control believes that he or she can influence events and their outcomes, while someone with an external locus of control blames outside forces for everything.

When are people most confident in their choices—before or after placing bets?

AFTER - People are more likely to believe in their bet after they put the bet down. As soon as we put the bet down it stays in our consideration set for longer which gives the person more confidence in their own bet because they are spending more time thinking about it, and getting more excited about winning.

Strength

Accessibility - how easily retrieved from memory Confidence - strength Persistence - endurance Resistance - how easily they change

Imagine you are opening a new movie theater and wanted to optimize your popcorn options. You need to have a small and large at $4 and $8, but can add one more option. What price and size would you set to elicit the attraction effect toward the large size? What about the compromise effect?

Adding a medium size for $7.50 would attract more people to buying the large $8 popcorn because it gives the illusion that it's a better deal even though they're still spending more money than they would've. The compromise effect would be when a target product appears more attractive when it is viewed as a "good compromise". So this would mean making the middle priced popcorn seem like the best value and best price by pricing it somewhere in the middle, like $6. If they want the target to go for the Large size, you would add an Extra Large size for $12 makes the price a little too much, so they would have to go for the Large size as a good compromise

What are 3 ways to get exposure?

Advertisements, in-store, freebies.

Reward structure that expands the repertoire of purchases

Airline miles. In lieu of just giving free money or regular seating, airline may offer upgrade to allow customer to see different, improved aspect of business.

Consideration set

All the possible products a consumer is considering to buy. Decisions can be shaped based on what products make it into their consideration sets (part-list cuing, attraction effect, and compromise effect).

What do associative links do?

Associative links (of varying strengths) connect the nodes.

How are heuristics leveraged in marketing?

Availability: Frequency or likelihood = How quickly examples come to mind Easily brought to mind→ Overestimate Hard to think of→ Underestimate Example- AllState Insurance Anchoring and Adjustment: People make estimates or decisions starting from an initial value, the anchor, then adjust. (Going to a luxury car dealership before a regular one - it sets your anchor high) Representativeness: Used to understand unfamiliar things. Making predictions based on perceived similarities between a specific target and a general category. Assuming a person that looks like your friend has the same personality and interests as your friend

Why are poor children more likely to perceive coins as larger?

Because due to the fact that they were raised with money being a greater issue, they will see articles of money with greater significance AKA size

According to the "Nag Factor" video, why did marketers study how often parents were nagged by their children to buy specific products?

Because it turns out that products are bought more when a child nags about it

Why do we categorize?

Because of quantity of information in our environment.

How do we categorize?

By similarity.

Meaningful encoding is likely to be achieved via:

Depth of Processing: -Shallow: physical structure -Intermediate: basic analysis -Deep: detailed analysis Generation Effect: -Self-generated answers are better remembered -Rhetorical questions - "do you want to lose weight?"

What is Attention?

Devoting cognitive resources to stimulus.

Two types of taste tests

Discrimination: shows if people can tell the difference between brands, but doesn't show preference Preference: shows if one brand is preferred to another

What is a good example of a company that provides an excellent omni-channel experience?

Disney

Give an example of a company that engages in a successful holistic marketing strategy. Why is it successful?

Disney - all omni channels are cohesive; show an experiential video on their homepage; app has map of park; starting new wristbands in parks for experience

Energy Drink name

Dosske -d is luxurious -ee sounds is speed -hard k is daring, active -ss is elegance

Which of the following is an example of deep culture? a. in AZ, air conditioner is a staple in every house b. in europe, smaller cars are more prevalent than large vehicles c. ASU is a "biking" campus d. B and C e. none of the above

E. NONE OF THE ABOVE

How did Homeplus leverage the ecology and social structure of South Korea to become successful?

Ecology: they use the subway, have smartphones, high population density in grocery stores, small apartments Social: people hate shopping because they are so busy, technology is a huge thing in Korea

If a company wanted to decrease the volume of their soda can slightly while maintaining the same price, this would be an example of them taking advantage of the _______________.

Elongation Bias *Just Noticeable Difference* Classical Conditioning Weber's Law

Ultimate goal of experiential marketing

Establish the integration of multiple facts in such a way that the consumer responds to a product offering based on both emotional and rational responses To do this, you need to know the target audience -What are the needs and values? -How do they think and feel?

Ecology and social structure shape _____ culture?

Evident

When you travel to a foreign country, you typically observe the ______ culture in the area

Evident - its just what you see, not deep

Overt modeling

Ex: 'as seen on tv' Consumer observes and imitates modeled behavior and consequences

Covert modeling

Ex: Airline plays warm sunny vacation commercial during winter Consumer is told to imagine a model (or self) performing behavior and consequences

Verbal modeling

Ex: united way solicitor reporting on gift-giving behavior of neighbors Consumer is given a description of how others similar to them behave in purchase/use situation bandwagon

Difference between exposure and attention?

Exposure= pre-attentive processing. Attention= pertinence analysis.

T/F: If something is postdictable, it is less likely to be sticky.

FALSE

TRUE OR FALSE: Offering a customer 2 free flights for signing up for an airline credit card is a good way to foster intrinsic motivation.

FALSE - extrinsic

T/F: In a high power distance nation, a factory worker would feel reasonably comfortable speaking about poor working conditions to his boss.

FASLE - it would be true if it was a low power distance nation

Direction

Favorability - positive/negative; good/bad

Context Effects

Features of the environment that influence consumers purchasing decisions.

Which of the following is an example of an attitude:

Feeling anxious about getting a good seat on Southwest Airlines ***Believing that American Airlines is good*** Thinking that Delta Airlines often has flight delays

One of the issues Jack highlighted was with low send-in rates based on the initial mailer he was using. What were some of the issues with this mailer?

Flimsy, not trustworthy, off brand, confusing design, and not memorable.

What does it mean to market holistically?

Focus on experience providers

When are heuristics used by consumers?

For less important decisions, when available information increases, and when there are many alternative choices.

What are the two main differences between Maslow's and the newest ASU version?

Goals met one-by-one (Maslow's) and multiple goals/needs being met at once (ASU version). ASU is parenting and evolution

Convex Reward Structure:

Greater levels of expenditure earn proportionately greater rewards. People who are extra loyal get a greater reward

Why was Homeplus successful?

Grocery shopping is a dreaded task in Korea because they are so busy, they created virtual stores in the subway station, where they could shop on their phone while they waited for the subway Ecological: use subway, have smartphones, high population density, small apartments Social: people don't like shopping, technology

Mood: happy vs. sad

Happy mood increases spontaneous purchases; sad mood makes people process more carefully (using central route)

Which of the following would Chase and Dasu most likely encourage based on their findings?

Having customers at a hotel pay fro items in the mini bar as son as they consumer them Not giving patients the option to choose the flavor of toothpaste used at the dentists office Frequently changing the check in procedure at a hotel ***Paying for concert tickets and apparel before arriving at the concert*** (Get bad out of the way early)

Ambivalence

Having good and bad feelings towards same thing

Self monitoring: Are you going to exercise?

High example - will check room, check gym, see who is there, then decide Low example - will decide immediately

Attribute-based maps?

How a product relates with 2 attributes.

associative network

How knowledge is organized

Greg Rudolph: Entrepreneurship

How should entrepreneurs approach risk? : *Reduce your risk as much as possible* What are ways that Board Blazers applied Cialdini's influence principles? -Reciprocity: Skate Stickers, "you have $4.20 left to spend", GoPro giveaway. -Social Proof: Media features, Amazon reviews/ #1 best seller, social media platforms. -Commitment & Consistency: "The Original" LED Underglow Board Lights, current customers are our best customers. "Get $5 off your next online order w/ SAVEFIVE coupon". Who is Tech Na$ty? Professional skateboarder who is sponsored by/supports Board Blazers

Automatic evaluation

If you associate "good" or "bad" with two brands, you want then to take less time saying "good" for your brand and more time saying "bad"

What is implicit bias? Based on the Gladwell reading, what can weaken this bias?

Implicit bias is an unconscious bias, referring to the attitudes or stereotypes that affect our understanding, actions, and decisions in an unconscious manner.

Equation for both brands:

Importance x Brand eval

Beer reading-influence of labels on taste of preferred beer and taste of beers overall:

Improved the ratings of overall taste of beer. The loyalty of the participants towards their brands increased when positive brand identification was possible.

What is pluralistic ignorance? What weapon does it relate to?

In social psychology, pluralistic ignorance is a situation in which a majority of group members privately reject a norm, but incorrectly assume that most others accept it, and therefore go along with it. This is also described as "no one believes, but everyone thinks that everyone believes" - example of social proof

Surveys sent by mail often have low response rates. Which technique is likely to be more effective in increasing the number of responses:

Including a "gift" check for $5 with the survey.

Hofstede's elements of deep culture

Individualism/Collectivism -Degree to which people prefer to act as individuals rather than as members of groups Masculinity/Femininity - Degree to which traits associated with men vs. women are valued Uncertainty Avoidance - Degree to which people prefer structured to unstructured situations Power Distance - Degree to which inequality is regarded as normal Long/Short term orientation - Degree to which values are oriented to the future rather than the present and past.

Gestalt Laws

Innate laws of organization; we interpret meaning from the totality of a set of stimuli rather than from an individual stimulus. Proximity - objects placed close together are perceived as a group Similarity - objects that look similar to one another are perceived as a group Figure-ground - one part of the stimulus will dominate (the figure) while the other parts recede into the background (ground) Closure - when an object is incomplete, people perceive the whole by filling in the missing information

What do we use it for?

Learn how brands in the market are perceived, learn what is desired from consumers and being fulfilled, and constructing a model for predicting consumer preferences and market share for new/modified products.

What is culture?

Learned set of shared meanings, rituals, norms, and traditions that are shared among members of an organization or society.

How are links in a network created?

Links in networks created through knowledge and experience; When one node is activated, this activation spreads along links to related concepts.

Identifiable victim effect

Make people feel something. This effect refers to the tendency of individuals to offer greater aid when a specific, identifiable person ("victim") is observed under hardship, as compared to a large, vaguely defined group with the same need.

What makes something non-conscious? What are consumers unaware of?

Mental processes often occur without awareness but still affect consumer behavior, Adaptive unconscious - automaticity allows consumers to efficiently use their cognitive capacity.

Heuristics - what are they?

Mental shortcuts that help consumers simplify their decision-making tasks. Allows for efficiency but can also lead to oversimplification and overlooking important information

Source Confusion

Misremembering where the information came from

Are prototypes more or less likely to be included in consumers' consideration sets?

More

MAAM

Multi-Attribute Attitude Model

What is meant by "Omni-channel" experience? Why is it important?

Multi-channel approach to service that provides a completely integrated customer experience (In store, online, mobile)

Ultimately, was the mailer redesign worth it? Why / why not?

No, because Buyback Boss was still losing money because they were spending more on the redesigned box and little details and still weren't getting that many more people to send it in. Approx 12 % increase.

Indifference

Not having an attitude at all

Narrative names

Pandora, Forever 21, with a lot of money, the name can be anything

Why are we conditioned to mimic others?

People automatically detect when others copy their behaviors and mannerisms. This fosters rapport and prosocial behavior

Elongation bias

People focus on the elongated dimension (coke picture example - they like the closer and bigger picture of the coke)

What is priming? What do all priming effects have in common?

Priming refers to the idea that simply thinking about a concept activates related concepts in memory. Priming influences subsequent attitudes and behavior. Key experiments: -Apple / IBM; Disney vs. E! -Dasani...ingroup outgroup

What is exposure

Process by which consumer comes into physical contact with stimulus.

Your friend claims that he is addicted to Chapstick because his lips get dry and cracked as soon as he stops using it and they feel better when he applies it again. This is an example of:

Punishment *Negative reinforcement* Positive reinforcement Shaping

False Memories

Remember items or events that never happened (Bugs Bunny example)

The popular 2001 Usher song, "You Remind Me," describes how Usher is hesitant to embark on a relationship with another young woman because she reminds him so much of his ex-girlfriend. Usher sings, "You remind of a girl, that I once knew. / See her face whenever I, I look at you. / You won't believe all of the things that she put me through. / This is why I just can't get with you." Usher's hesitation is an example of what common decision making heuristic?

Representativeness

An ad that makes consumers fill in the blanks to the identify the name of a new seasonal latte flavor is likely taking advantage of the _________ strategy to get attention.

Rhetorical questions Appealing to goals ***Incomplete stimulus****

Board Blazer's "Blazing Special" Amazon tagline is a good example of what social influence?

Scarcity - special won't last forever, its a rare special

What are the three hierarchies of needs?

Self fulfillment needs, psychological needs, and basic needs. Least pressing at the top and most pressing at the bottom.

A new ad campaign for the United Way focuses on raising awareness of poverty in people's own communities. This campaign tries to link people's emotions to the needs of others. What type of experimental campaign would this MOST be an example of?

Sense Feel Think Act ***Relate*** - relate individual to something outside themselves

A popular company has decided to advertise one of their perfumes through product placement in an upcoming romantic comedy, and wants to know how to make the placement most effective. What should they do?

The consumer is exposed to the new perfume a FEW TIMES, but DOES NOT REMEMBER seeing it.

In a trial, the judge will sometimes instruct a jury to disregard evidence. According to the research cited in Influence, what is a common result of the judge's instructions?

The jury focuses on the disregarded evidence and renders a decision that incorporates it even MORE strongly than had the judge never instructed them to disregard it.

Divisibility of Rewards:

The number of discrete reward-redemption programs and opportunities a loyalty program offers.

What can similarity-based maps tell us?

They tell us how a product stands in relation to other brands.

Why are baby carrots packaged like potato chips?

To make the whole process of eating them more enjoyable for kids, and to make the package look more similar to junk food.

In a commercial, the Gap pairs a Madonna song with their brand. What is the UCS, the UCR, the CS and the CR?

UCS: Madonna song UCR: liking the song CS: Gap CR: like gap because of song

What is a need, how do you get consumers to perceive a need?

Understanding the discrepancy between desired and adequate state.

Being loyal, honest, trustworthy, fair, and respectful, etc. are examples of what types of values?

Universal values

Influence of mimicry on tip amounts, likelihood of purchase

Waitresses were shown to get higher tips when they repeated their customer's orders verbatim, vs paraphrasing their orders.

Suggestive names

coined words "hybrids of real words", you can guess what it is. Example: Verizon, acura, spotify, intel.

Social structure

consists of customs, rituals, laws used to maintain orderly social life ex: greeting with a kiss (France kisses vs Ohio does not); punctuality (Midwesterners is always on time, Latin Americans are usually late

Cool colors

coolness of leaves, sea, and the sky. (spa is blue to sooth) Cool colors= soothing and relaxing (blue has been shown to calm consumers).

Descriptive names

describe what something is, hard to own/trademark, can be limiting. Examples: Raisin Bran (national brand cereals- can't really market much further).

Simplicity

essential core of an idea, the golden rule. Example: "Southwest, the low-fare airline"

Why was Fresh & Easy unsuccessful?

evident culture?: Produce was packaged and wrapped which made it not feel as fresh - even though it made it more fresh Shelves were unstocked which looked weird - but it was to keep things fresh/save energy "Freshness dates" made the date 3 days earlier than expiration date - made people think food was going to go bad Not a lot of employees working to save money - customers thought it was bad service Lighting was dim because they wanted to save energy - felt sketchy to customers Deep culture?: Perceptions of healthy food is more expensive and high quality

Stories

get people to act on our ideas. Example: Chicken Soup for the Soul (spotted, not created). -Mentally rehearsing a situation helps us perform better when we see that situation in the physical environment.

Credibility

give people stuff they can test for themselves. Examples: "Where's the beef? Wendy's commercial. (Focusing on the small/ thin patties they were originally serving). - Dairy Queen- flipping the blizzard upside down w/o spilling.

What do taste tests do?

help determine brand strength

Bottomless Bowls: Key experimental design and findings:

if people believe they do not consume a larger volume of food, then that might lead them to feel like they are not satisfied. Their eyes—visual cues

Attributes:

important for attitudes towards brand (adjective)

Categories:

important for consideration sets (noun)

Extrinsic motivation:

is an encouragement from an outside force. Behavior is performed based on the expectation of an outside reward, such as money or praise. Example- Frequent flier programs.

Emotions

make people feel something, generate interest explain the benefit of the benefit. Examples: disgusted by popcorn's unhealthiness, seeing a black lung for an anti smoking campaign.

What is endowed progress

makes people think they have a head start toward completing a goal. It reduces the amount of perceived work, which makes them more likely to put in the effort.

Storage facility

the file cabinet of knowledge about products, services, shopping trips and experiences

What are examples of these? (from Gladwell reading):

the overarching theme in the Gold box campaign and tetanus study is that the messages were practical, relevant and interactive with the consumers in order for the stickiness effect to occur.

Intrinsic motivation

the stimulation or drive stemming from within oneself. Performance based on the enjoyment, pleasure, or curiosity satisfaction. Example- Spa treatments= relaxation.

Classical Conditioning

the use of existing associations to create positive or negative associations for a product or brand

Concreteness

things people can grasp onto, learning by doing. Example: ice-filled bathtubs, and apples with razorblades, naming white objects vs. naming white objects in a fridge. -Brown/blue eyes experiment: similar to segregation at Riceville, Iowa.

Encoding

transferring info into memory

Reciprocity

when you feel obligated to repay those who have provided us with something. Example- "Door in the face" technique reject, then retreat. Make a large request→ reject, make a smaller request → accept. (Costco free samples).

What are concerns with the marketing of

- Energy drinks Not healthy for body but marketing to kids with can features Ex: mario bros. Character on energy drink can marketing to kids - Cereals to kids - payday loans - multi-level marketing programs - they tell you that you will make so much money selling their product, then people buy a ton of the product, but never sell it; Herbalife - for-profit colleges - low success rate; On average, at every level of credential, for-profit are 30-40% more expensive than the same credential at a not-for-profit institution. Why? They only have tuition to generate revenue—must keep increasing costs—peg it to the full cost people are allowed to borrow from federal student aid program. 30-40% of people who start at for-profit will complete.

What can taste tests help us determine?

- Is it taste or perception that are driving sales? - If not preferred brand by taste but sales are high, you know you have a good brand image - If preferred brand by taste but low sales, you know you have a bad brand image

What are four key questions to ask yourself regarding how to tackle ethical issues?

- Is the action consistent with the your basic duties? - Does it respect the rights of affected parties (i.e., stakeholders) - Does it reflect best practice? - Is it compatible with your own deeply held commitments?

Part-List cuing - what does it do? How is it good? Bad? Where do we see it? Examples of it?

- Repeatedly presenting names of a few brands to increase prominence. - It is good because it makes it more difficult for consumers to think of additional brands (blocking) (Verizon vs AT&T....but there's also Sprint, T-mobile, etc.) - It is bad because it could lead to bad choices for the consumer, not picking the best one for them. - We see it on commercials, advertisements, etc, competitive advertising (Verizon vs Sprint commercial, Directv vs cable commercial)

What were some of the changes that Mr. Biyani had to employ in order to make is stores more attractive to local Indian consumers?

- Shopping in such a sterile environment didn't appeal to the lower middle-class shoppers he was targeting. - They were more comfortable in the tiny, cramped stores - He made his stores messy and "chaotic" because that was the culture Indians are used to - He would throw in old onions with good ones - having damaged as well as good quality produce in the same box gives customers a chance to choose and think they are getting a better deal. They also think they are more "farm fresh" with non-perfect produce

Why is it problematic to advertise directly to children?

- Undeveloped cognitive abilities - Unable to store/retrieve information in long-term memory - Prey on needs - Teach children materialism, act on impulse, immediate gratification - Do not understand cost - Types of products

Within the four key questions, what is meant by 1) visibility, 2) generality, and 3) legacy?

- Visibility- Okay with this on the front page of the paper? - Generality- Okay if everyone did this? - Legacy- Proud to tell my kids about this?

What are ways that you can make an attitude more favorable?

-Change performance on weaker dimension(s) -Change perception of performance on weaker dimensions -Change weights so that strengths are emphasized and weaknesses are not -Add attribute(s)

How can companies manage customer experiences?

-Coherently (in an integrated way) -Consistently over time -By paying attention to detail

Scent Study

-Consumers who smelled clean smells were more likely to list "cleaning" as an activity -Consumers who smelled clean smells removed crumbs at a higher rate than those who did not.

What is modeling in marketing? Examples of it? How does it benefit consumers?

-Development of new responses -Model appropriate purchase behaviors and product use -Diffusion of innovations -- innovators & imitators -Avoid direct punishment Benefit Customers?: It can develop new modes or improvements (overt, covert, & verbal)

Chase & Dasu elements

-Finish Strong -Get the bad out of the way early -segment the pleasure, combine the pain -build commitment through choice -give people rituals, and stick to them

Attitude-behavior match—how might this influence how you ask consumers questions?

-General attitude measures predict general behaviors but not necessarily specific incidents -Attitudes better predict behaviors when they correspond on action, target, context and time

What is an example of a company using advertising to change or generate links?

-McDonald's - super size me made them start selling apples and carrots -"Got milk" campaign -Chipotle - e coli rebranding

When is classical conditioning most effective?

-Most effective for new product/service, brand extension -Products with a little differentiation, low-involvement products

Four triggers of need recognition:

-Reminder messages -Family life cycle -Changing reference groups -Boredom, novelty seeking

Where are Needs and Goals stored? How does the Apple logo influence creativity?

-Stored in Memory in Associative Networks -Yes, users of Apple products were able to creatively come up with more ideas opposed to users of IDM products.

What are the four factors that determine classical conditioning effectiveness?

-Strength of unconditioned stimulus (UCS) -Uniqueness of pairing -Number of pairings -Consistency of pairings

Use four sticky principles to explain why the Elan Gale flight story went viral.

-Unexpectedness. The whole situation seemed surprising but also made sense so people believed it. It was also had -Concreteness because he tweeted concrete details and posted pictures which made the story more compelling and easier to grasp. -Stories because he told a story about what happened on his twitter (the whole story was made up though). -Emotions because he tweeted that the lady was rude which made people mad/upset -Credibility because he posted tweets and pictures

Punishment

-When consumer engages in behavior, something bad happens -Behavior → positive aversive consequence → decrease probability of behavior -Ex: goes to cheesecake factory-> waits for 2hrs to be seated and has terrible food-> never return for cheesecake -Ex: eat expired food, get sick

The brown eyes / blue eyes experiment in Iowa tapped into which Social Contagion principle?

Concreteness

Feelings of Familiarity

Confusing familiarity with positive qualities; customers like products they have seen a lot

Phonemes

Consumers have links between raw sounds of vowels and consonants and specific meanings and emotions. (i.e. "Frish Vs Frosh" example)

What do nodes do?

Consumers store concepts, feelings, and events in "nodes"

5 strategic underpinnings of EM and what they describe—examples?

Sense - create sensory experiences, attracts attention and motivates - EX: cleansing, bath products Feel - create affective experiences, creates bond and thus makes experience personally relevant - EX: Thai Life insurance commercial Think - create cognitive problem solving experiences that engage consumers creatively, adds permanent cognitive interest to the experience - EX: drunk driving ads, iPhone X ad where it shows all the things it can do Act - show consumer alternate lifestyle, induces behavioral commitment - EX: Nike "Just do it" Relate - expand beyond consumer's personal, private feelings, relate individual to something outside themselves, goes beyond individual experience and makes it meaningful in a broader social context - EX: Bento, Keyboard Cat, Shelter Pet Adoption

Which is /are(memory) unlimited?

Sensory and Long-term both have unlimited capacity; Long-term has unlimited duration

Which program ultimately increased learning more for young children?

Sesame Street *Blue's Clues* It is impossible to tell

Which of Hofstede's 5 dimensions helps explain why american consumers are so apt to purchase items on credit relative to Japanese consumers?

Short term/Long term orientation (degree to which values are oriented to the future rather than the present/past)

Marketing situations in which unconscious influences would / would not be effective

Showing consumers photos with Dasani in them increased their likeliness to take a bottle of Dasani later on. - it DOES matter who is drinking the Dasani - show them MANY times but NOT remember

Product placement: Subtle vs Blatant

Subtle (left of arrow): subliminal, supraliminal, used but not mentioned Blatant (right of arrow): used and mentioned, sponsorship, product integration

In what restaurant are people more likely to underestimate calorie content (Subway or McDonald's)? Why?

Subway, because they associate this food selection to be relatively healthier.

Where has PetSmart been successful in the omni channel experience? Where has it been unsuccessful?

Successful: -Consistent experience across platforms (prices match, products available) -Easy transition from one channel to another -Platforms speak to each other Unsuccessful: -on mobile site but they fixed it - it was too cluttered, search box was not easy to find

What is an example of a placebo effect?

Sugar pill in a birth control pack.

What is an example of the same product being positioned to two different segments of consumers?

Target market for dutch/starbucks Dutch targets young Starbucks targets older But they both do coffee

How can music affect consumption / sales; consumer processing?

Tempo affects the pace of people walking through the store; affects sales (slower music = more sales, *all else being equal!*)

Elan Gale story—why did it go viral

Went viral for tweeting his feud with the woman in seat 7A during a flight. He made up the whole story to entertain his followers but it actually caught news and people believed it. It used Unexpectedness because it was surprising but believable, Concreteness because he provided pictures and tweets of it, Story because it told a story (especially because it wasn't true), and Emotions because it upset people with how "rude" the lady was being, Credibility because he was a celebrity and the tweets and pictures he posted

What is a category namesake?

When a brand becomes synonymous with category itself. Examples- Q-tip (cotton swab), Kleenex (tissue), and Band-aid (adhesive bandage).

Short-term memory

Where information is processed; limited duration, 15-30 seconds; capacity: limited, 7+- 2 units of info

Long-term memory

Where information is ultimately stored; unlimited duration and capacity.

Warm colors

Yellow, orange, and red = heat of sun and fire. (casino is red to get attention) Warm colors= encourage activity and excitement (red has been shown to increase blood pressure).

Does the number of exposures of a product matter? Does whether or not you remember the product matter?

Yes to both - Dasani example Showing the product MANY times but DOES NOT remember seeing it will make the consumer more likely to purchase the product

Operant Conditioning

You alter the probability of behavior by changing the consequences of the behavior

Attraction Effect

a good brand looks even better when an inferior brand is added to the consideration set - Popcorn example (Decoy video) - Tough choice, look for a tie breaker; the inferior brand increases the attractiveness of the target brand, making the choice easier - IMAX looks better after adding Real D 3D because it's only 50 cents more and a better experience

Compromise Effect

a target product appears more attractive when it is viewed as a "good compromise" - Galaxy becomes more attractive because it's the "best of both worlds" - Compromise between 2 extremes = Best of both worlds - The addition of a third option can increase a product's market share (if the product is now in the middle)

Schema:

an associative network that represents what consumers know about an item (brand, product, category).

Target word

appears after prime word; positive and negative adjectives; shown until consumer responds "good" or "bad"

What is the goal gradient effect?

as people get closer to achieving a reward they accelerate their behaviour to progress towards the goal. Example: Dutch Bro's punch card.

What is meaningful encoding?

associating active information in short-term memory with other information from long-term memory.

Prototype

most frequently encountered category member, most easily recalled, and a standard of comparison for category.

Unexpectedness

needs to make sense to hindsight, pain drives filling a knowledge gap, surprises must be "predictable" Example: Nordstrom (elderly man returns a fishing rod= excellent customer service), a bag of popcorn is as unhealthy as a whole day's worth of fatty foods.

Commitment and Consistency

once a commitment is made, we are more likely to agree to future consistent requests. Works best when voluntary, effortful, and public commitments in writing. Two types: Foot in the door and Low ball. -Foot in the door: get someone to agree to small request then ask for something larger. Example: putting up a small sign in the front yard, then changing it to a larger sign in the yard. Low ball: get people to agree to small request then change the terms of the request. Example: asking people to come into work at 7am vs. asking people to come into work but not initially specifying the time. The people that agreed to come into work without knowing the time were more likely to come in at 7am.

Authority

people comply with the request of authority figures. Emphasized through titles, clothing, and expensive possessions. Examples: "What cigarette do you smoke doctor-Camel brand", Kiehls skincare

Social Proof

people look to others when deciding what to do. People look to others when deciding what to do. Most influenced when similar people are doing it, or there is a high uncertainty. -Hotel experiment: group a- "Help save the environment" vs. group b-"Join your fellow guests in helping save the environment". 75% of the guests who were in group b were more likely to reuse their hotel towels. -More examples: "I voted sticker on FB", greasing the tip jar by putting money in at the beginning of your shift. Sasquatch music clip shown in class. Wallet example in the book. -Werther Effect: after every front page suicide story an average 58% more people would kill themselves, the more publicity the more likely people were to kill themselves. Same with automobile and plane accidents-- people were engineering these lethal accidents.

Mere exposure effect

people prefer things they are most familiar with; we see something more often, we like it more

Liking

people prefer to say yes to people they know and like. Examples: Tupperware parties. -4 factors: familiarity, physical attractiveness, similarity, ingratiation (compliments).

Scarcity

people want what they can't have. Examples: value→ rare but rare--\> valuable. Black Friday. -When things are taken away we want them more. -We value things more when they are newly scare and when we are in competition with others for it.

Ecology

physical surroundings, technology used to negotiate ecology ex: big trucks in AZ compared to east coast/Europe; using an umbrella for sun in AZ rather than using it for rain

Memory

psychological process in which knowledge is recorded.

Differential equation

rand - second brand

Dependent variable

reaction times (in milliseconds) to say that target word is good or bad -The reaction times will be faster if the prime word was consistent with valence of target but will be slower if prime word was inconsistent with valence of target. We can use this to help link certain feelings to brand names.

Retrieval

remembering and accessing what is stored in memory

Prime word

single word or image, shown very quickly

What is sonic identity?

sound identity, or sonic branding (also known as audio branding, music branding, sonic branding, acoustic branding or sonic mnemonics) is the use of sound to reinforce brand identity

Arbitrary names

tells you nothing about what they do, empty vessels, you need to explain them to people, but easy to trademark. Examples: hulu, apple, uber, voodoo

Just noticeable difference:

the amount something must be changed in order for a difference to be noticeable. (slide definition) Minimal difference that can be detected between two stimuli (relative to intensity of original stimulus)

Absolute threshold:

the degree of intensity of a stimulus necessary to correctly detect that stimulus 50% of the time. (slide definition) Minimum amount of stimulation that can be detected on a given sensory channel

Examples of culture first / marketing first?

•Goya - culture first - provided Latin culture to US; they identified culture then catered to that •McDonald's - culture first - they change their products to the culture - "McArabia" •NFL in Europe - marketing first - the US football culture wasn't the same in Europe so it didn't work •NFL in China - marketing first - China doesn't like physical sports and the NFL couldn't match with the culture of ping pong and badminton •Chaos theory - culture first - he changed his store to be MORE messy, small and chaotic because that is how the Indian shopping culture is, they hate big, spacious and organized stores