4201 final

performance based shortcut

Buy the best tasting/cleaning cookie (detergent) SUBSET: Price-based: (cheapest, the one on sale etc.) Basically - lexicographic Buy something that is best for performance Rate the performance as most important attribute and buy that one

how do we observe

Camera Nielsen's people-meter PC-meter Eye - tracking recorders Pupilometer Galvanic Skin Response Electroencephalograph FMRI Voice-pitch analysis Scanner based

problems with focus groups

Chain reaction=one says something, then someone else agrees Devils advocate=no to everything False termination=seems like there is a conclusion

why a/u/d of an offering

Consumption can occur for a number of reasons • Offering meets someone's needs, values, or goals o Get tattoo to meet a form of self expression, fit group, exprss feelings about someone or something Reasons for using an offering are filled with conflict, which hleads to some difficult consumption decisions

what can we observe

Human behavior or physical action Verbal behavior Spatial relations and locations Physical objects Temporal patterns Verbal and pictorial records Expressive behavior

trait theory of personality

-Internal characteristics of individuals -Individuals differ on these characteristics in a consistent way -Can be measured -Formed at an early age, relatively unchanging

advertising to children

-children don't understand intent to sell until around age 12, types of product advertised, host selling/spoke characters/privacy on itnernet

who controls exposure

-consumers select what media they consume/ what stores they go to -marketers control when/where consumers encounter their brand

special possessions

-pets -memory laden objects -achievement symbols -collections

sandwich generation

Adults caring for their own children as well as for aging/elderly parents and/or grandparents, helped costco

work and play

Americans work harder and longer than ever before Protestant Work Ethic - the value placed on work itself and on the delay of gratification to the exclusion of leisure and pleasure As Americans work harder: Some value leisure time more Others label leisure as wasteful - implications: pay for services=ahppier people because value time (housekeeper), delivery everywhere, offer productive leisure (productive on vacation)

expectancy value model

Analytical processes that explain how consumers form and change attitudes, based on the beliefs or knowledge they have about an object or action and their evaluation of these particular beliefs

mateiralism

Attachment to material possessions, including an enmeshed relationship between the ownership of objects and one's sense of self

fear appeals

Attempting to change people's behaviors by use of a message that induces fear.; elicit fear or anxiety; ineffective because consumers perceptual defense helped them block out and ignore the message; can work under certain circumstances=guilt/regret if experienced when consumer does or does not do something (applying sunscreen)

individualism

US culture, mass customization, want to present who we are (who we are is reflected by what we buy), goes to food=subway and five guys

10 best logos

US: nike, apple, mcdonalds, coca cola, google, Microsoft, pepsi, amazon, target, starbucks UK: apple, mcdonalds, nike, coca cola, google, virgin, adidas, Microsoft, amazon, bmw

consumer behavior employers

Universities, market research firms, manufacturers, advertising agencies, retailers, governments, museums, etc.

36 value proposition examples

Value proposition offers a reader clear picture of what your brand stands for and has to offer It should concisely tell your reader: How your product or service can solve problems, What they can expect if they purchase your product or service, The advantages of doing business with your company over your competitors

what do these studies tell us about consumer behavior

We comply more with perceived authority figures (Milgram study) Authority cues = rank, title, clothing etc. "expert" product endorsers We determine what its correct in part by finding what others think is correct (Asch study); conform to what others do Laugh tracks "fastest growing" "best selling"

high effort decision

Willing to invest a lot of time and to exert mental and emotional energy in making it; several criteria to judge on, motivated to be exposed to lots of information, thinking about it deeply, analyze it critically, and form attitudes about it

netnography

a branch of ethnography that studies the behavior of online cultures and communities

approach approach conflcit

a choice must be made between two attractive goals

emotion

a conscious mental reaction subjectively experienced as strong feeling directed toward specific object and typically accompanied by physiological change (high intensity)

sensation seeker

a consumer who actively looks for variety

deal prone consumers

a consumer who is more likely to be influenced by price

purchase panels

a data-gathering technique in which respondents record their purchases in a diary

exponential diffusion curve

a diffusion curve characterized by rapid initial growth

S shaped diffusion curve

a diffusion curve characterized by slow initial growth followed by a rapid increase in diffusion, dynamic because more adoption early on

post decision dissonance

a feeling of anxiety over whether the correct decision was made

post decision regret

a feeling that one should have purchased another option

associative reference group

a group to which we currently belong

cognitive load

a lot to think about=affective response

underdog

a lower share brand

top dog

a market leader or brand that has a large market share

compensatory model

a mental cost-benefit analysis model in which negative features can be compensated for by positive ones

multiattribute attitude model

a model that combines a number of pieces of information about belief and evaluations of attributes of an object

disjunctive model

a noncompensatory model that sets acceptable cutoffs to find options that are "good"

innovation

a product, service, attribute, or idea that consumers within a market segment perceive as new and that has an effect on existing consumption patterns.

point of purchase

a promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying

prepurchase search

a search for information that aids a specific acquisition decision; occurs in response for the activation of problem recognition

noncompensatory model

a simple decision model in which negative information leads to rejection of the option

affect referral

a simple type of affective tactic whereby we simply remember our feelings for the product or service

brand community

a specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use, associative reference group formed around brand

agreeableness

a tendency to be compassionate and cooperative rather than suspicious and antagonistic toward others

conscientiousness

a tendency to show self-discipline, act dutifully, and aim for achievement

terror management theory

a theory of death-related anxiety; explores people's emotional and behavioral responses to reminders of their impending death; worldview of values/beliefs to cope with terror knowing that we will die someday despite innate impulse toward self preservation, elaborate so much as threat of fatal consequences may be ineffective, not process messages suggested change in behavior

attribute theory

a theory of how individuals find explanations for events

equity theory

a theory that focuses on the fairness of exchange between individuals, which helps in understanding consumers satisfaction and dissatisfaction

Multiattribute expectancy-value model

a type of brand-based compensatory model

effect of culture

a) Low-context cultures (North America, Northern Europe) separate a message from the context in which it appears (emphasis on what is said than visuals) b) High-context cultures (Asian countries) interpret messages differently based on the characteristics of the message sender (e.g., age, social class)

Adoption/Resistance to Innovations

adoption=purchase of an innvoation by an consumer or household resistance=desire not to buy an innovation, sometimes even in face of pressue to do so

boomerang kids

adult children returning home, spend less on household items and more on entertainment

projective techniques

advantage=verifying hypthesis, minor cognitive demands placed on respondents; disadvatange= complexity of data, difficult for some respondents to fully immerse themselves, reliability of instrumetns (situational factors)

direct comparative advertising

advertisers explicitly name and attack a competitor or set of competitors on the basis of an attribute or benefit; when better than competitor; generate attention and brand awareness and increase message processing, not have high credibility

dark side of consumer behavior

advertising affects self image, advertising misrepresent segments of consumers, and marketing invades consumers privacy

marketing sources of influence

advertising, sales promotion are mass media delivered, delivered personally salespeple/servce representatives/customer service agents

characteristics of the decisions

affect how consumers make their decisons, availability of information/information format/trivial attributes/group context

evaluative conditioning

affective response by repeatedly pairing neutral CS (brand) and an emotiaonlly charged UCS (celebrity); encourage psychological one (positive feeling toward preference for CS)

low effort feeling based decisions

affective tactics, brand familiarity, variety seeking, and impulse purchasing

cultural environment

affects what motivates consumers, how they process information, and the kinds of decisions they make

lifestyle dimensions: demographics

age, education, income, occupation, family size, dewlling, city size, life cycle stages

what influences categories

age, knowledge, goals, what we are told, culture

implications of family and children

americans highly receptive to extravagant toys, give them great childhood feeling, highly receptive to children safety products and books

time situational elements

amount of time available, time of day, how much time a consumer has available to do a task influence the buying strategy used to select and purchase product (easy to justify, habitual, more affetive, based on gut); time of day=some products only appropraite for certain times of day

mystery ad

an ad in which the brand is not identified until the end of the message

cobranding

an arrangement by which the two brands form a partnership to benefit from the power of both

impulse purchase

an unexpected purchase based on a strong feeling

analysis of reasons

analyze their reasons for brand preference increase the link between attitude and behavior in situations in which behavior is measured soon after attitudes are measured

anchoring and adjustment

anchor on the initial construct and not adjust sufficiently, look for cue to think about what price I want to pay; only works if not familiar with what price should be; make reference point (starbucks set new reference point)

strongest emotion

angry, awe=second

if consumers dissatisfied

apology and control situation, discount, take no action, discontinue purchasing the product or service, complain to company or to third part and return item, engage in negative word of mouth

what does marketing ethics apply to

apply to relationships with customers and relationships with employees/managers/suppliers/stake holders

openness to experience

appreciation for art, emotion, adventure, and unusual ideas; imaginative and curious

fewer CA and SA

argument in message are strong, involved in proram showing the messages

unsatisfied needs

arises when customers' desired level of satisfaction differs from their present level of satisfaction, creates goals to relieve tension

sureys

asking questions to draw quantitative conclusions about target population; understand a specific customer segment and help marketers understand product purchasing patterns

causal research

assess cause-effect

thin slice judgements

assessments consumers make after brief observations despite receiving minimal information input

transformational advertising

associate the experience of using product with unique set of psycholocial characteristics; increase emotional involvement by making use of product or service more pleasing and richer experience as opposed to factual informaiton

prospect theory replaces

expected utility (objective) with subjective utility (how we see things): incorporates human element of evaluation People don't follow a traditionally "rational" theory of choice Diminishing returns Losses loom larger than gains (steeper for losses than gains) Reference point

measuring belief strengths

bi; does it have a business school or how likely is it that OSU has a business school; how likely is it that OSU has this feature/characteristic

cant train ourselves to detect

biases, eyes keep lying to us, biases have root in unconcious system 1 thinking=not accessthem to change

personality measures

big 5, material values scale, need for uniqueness, mmaximizer vs satisficer, spendthrifts vs tightwads

draws a lot of attention

big social issue, current topic,

consumers make inferences on

brand names and symbols, product features and packaging, price, retail atmospherics/displays/distributions

awareness set

brands I know

brand equity

brands very name has value beause of the positive ideas and expectations associated with it in consumers mind

bait and switch

bring ou in and try to sell you something else, misrepresenting the selling intent, incorrect statements

Global values

broadest level - most enduring, strongly held, and abstract values that hold in many situations; maturity, security, prosocial behavior, restrictive conformity, enjoyemt, achievement, and self direction

the first advertisements

brothel advertisements at Ephesus in turkey's marble road; 1st century CE=hidden brothel

generally people undersearch

but can oversearch but will lead to less satisfaction

framing should not make a difference in choice

but it does, a negative frame vs positive frame

% of sexual ads have not changes

but the type sexual forms have changed over the years

memory laden objects

buy objects to mark memories, overestimate how much they will retrospect, material objects are better memory markers when marking special occasions (class ring to relive experience), momemtos can gain value now (notre dame)

you are what you consume

buy to be able to tell somehting about themselves, social identity as individual consumption behaviors; inference of personaity based on consumption patterns

different people may play different roles

buyers, end users, influencer

brand loyalty

buying the same brand repeatedly because of a strong preference for it

multibrand loyalty

buying two or more brands repeatedly because of a strong preference for them

ways of dipsoing of an offering

buying, trading, renting, leasing, bartering, gifting, finding, stealing, sharing; • Sometimes nothing but the packaging remains of an offering (food) after it has been consumed • Consumers who want to dispose of tangible products o Find a new use for it=continue use for different prupose o Get rid of it temporarily=renting or lending o Get rid of it permanently=throwing away, recycling, trading, giving awat, selling Can refuse to get rid of it if regarded as special

weaknesses in external secondary data

expensive (bigger companies use it); who chooses to do it=skew data they collect

price quality heuristic

expensive=better; people think amazon cheapest but they sell for more than other places

of an offering

experiences, people, products, services, activities, ideas

field experiments

experiments in real world, market test

casual research quantitative

experiments, test markets (quasi-experiment)

why we seek opinion seekers

expertise (unbiased knowledge), highly interconnected in communities (social standing), hands on product experience (absorb risk)

compensatory rule

explicit attributes weihts; weight attribute=-1; power=3 multiple and multiply/sum to get values, pick one with highest points based on weight

stages of memory

exposure to attention to perception

priming

exposure to words, pictures, or things outside conscious awareness=affects emtoions and moods

selective exposure

exposure trying to maximize by placement, marketers control when/where consumers encounter their brand and consumers select what media they consume/what stores they go to

qualitative interviews

face to face with one respondent with objective of exploring subject matter in detail, structured with preselected questions, directiveness and structuredness; good at finding what people hate; gives idea about functional ideas (need quant)

normative factors

factors from outside that change behavior

product in younger market

facts/expert opinion and strong arguments more effective

lifestyle dimensions: interests

family, home, job, community, recreation, fashion, media, and achievements

hearing

fast music=energize, slow=soothing, fast=rapid traffic flow, slow=increase sales, likeable and familiar music=good moods

individualistic countries

favor empathetic message

attitudes can be described in terms of

favorability, attitude accessibility, attitude confidence, persistence, and resistance

what happens if they do not recognize body feedback

feedback cue will have no effect on attitude or behavior

emotions

feels good or right=favorable attitude; can get these from others as well

marketing strategy and involvement

find dedicated segment, concrete on high involvement segments, attempt to increase or build involvement (social influencer, tie to feelings), link to involving situations, may want to decrease involvement

satisfice

finding a brand that satisfies a need even though the brand may not be the best brand

why innovate

first mover advantage, meet new needs, differentiate themselves, be creating new need, new product, figure out how to make something cheaper

mood congruence

fits mood and looking at something that matches mood; memory effect=better recall if valence of materials fits with current mood

me vs we

focus concretely on people close to us (family)

influence consumers attitudes

focusing attention on emotional appeal, experience positive emotions in situation

physiological level

food/water/shelter/oxygen

ad hoc

for a specific purpose or situation; goal driven categories

cutoff level

for each attribute, the point at which a brand is rejected with a noncompensatory model

referencegroups differ on

formality, degree of contact, homophily, group attractiveness, density (all know each other), degree of identification, tie strength

hypothesis generation

forming expectations about the product or service

custody scenario

frame of questions matter because difference between risk seeking and risk averse (deny vs award)

safety level

freedom from harm/financial security

many message arguments

frequency heuristic

primary groups

friends, face to face interactions (more affected by these)

social needs level

friendship

consequences

functional and physiological

more ways to classify innovations: by benefits offered

functional innovation, aesthetic or hedonic innovations, symbolic innovations

deep metaphor

fundamental viewing lenses we use to orient ourselves to the world around us, below awareness in unconscious mind; shape and reshape everything we do, common denominators among consumers

observations and ethnographic research

gain insight into potentially effective product, promotion, price, and place

group decision making roles for housheold members

gatekeeper, influencers, deciders, buyer, user

emotional content

concrete emotional appeals are more effectve in short term behavioral intentions, abstract emotional appeals are more effective in stimulating long term intentions

attributes

concrete or abstract

attitude confidence definition

confidence tends to be stronger when attitude is based on greater amount of information or on more trustworthy information, more likely to predict our behaviors

what leads to dark side outcomes that can potentially harm customers or marketers

conflicts that arise from dilemmas in marketing can sometimes create this

noncomepensatory models

conjunctive, lexicographic, and elimination by aspect

beleivers

conservative, conventional, traditional

late majority

conservative, wary of progress, rely on tradition; skepticalm below average social status

when MAO low, working memory

consistent of simple reporduction of object

how does social class affect consumption

conspicious consumption, conspicious waste, compensatory consumption

Marketing invades consumers' privacy

consuers responses at supermarket and retailers, public domain

implicit memory definition

consumers are not consciously aware that they remember something, makes it easier to process things we have encountered before,

through repeated exposure

consumers become familiar and like it more (mere exposure effect)

social relational theory

consumers conduct their social interactions according to the rights and responsibilities of their relationship with group members, a balance of reciprocal actions with group members, their relative status and authority, and the value placed on different objects and activities

high elaboration situations

consumers confronted with persuasive message that conflicts with their own attitudes will generate counterarguments that strengthen initial attitudes

attitude behavior relationships over time

consumers exposed to advertising message but do not try product, their attitude confidence declines over time, message repetition, trial based brand attitudes are likely to decline over time even though advertising based attitudes do not

Reasoning by Analogy or Category

consumers form attitudes by considering how similar a product is to other products or to a particular product category

body feedback

consumers may not monitor their own physical reactions, body feedback can influence attitudes and behavior(nod=positive); need to know meanings of feedback in order to explain their behavior

MAO is high working memory

consumers use elaborated imagery processing to enage in daydream or elaborated discursive processing to think about something or work out solutions to current problems

importance of time

consumers used to spend time to save money, now they spend money to save time, time has become valuable currency in consumer lives; 70% of us consumers 16 years and older say they don't have enough time to do all the things they want

external processes

consumption decisions and how we process information are affected by out culture; diversity/household income and class/value personality and lifestyles affect decisions

goal derived categories

contains objects that are perceived as belonging together based on their ability to serve the same goals

descriptive research quantitative

content analysis, surveys, data mining

message content and repetition

content in which message is delivered can affect the strength of consumers beliefs and prominence of those beliefs for consumers; repetition=increase salience of their beliefs

unethical behavior can create

controversies in context of acquisition/consumption/ and disposition

sunk cost effect

costs that have already been incurred and cannot be recovered; irration=did get moeny's worth vs rational=am i satisfied; make small commitments and when try to pull out=total commitment they have already made

first mover advantages

create new category or often combine two known products, brands to be prototype, easier to recall leads to higher sales

opinion leaders are part of the category

gatekeepers

gen x vs millennials

gen x is skeptical and need more convincing, millennials ideal driven

types of opinion leaders

generalize opinion leader (polymorphic) rare; market maven; monomorphic

polymorphic

generalized experts=rare, hard to be expert in everything

exploratory research

generate ideas

when message content differs from what they already believe

generate more counterarguments and fewer support arguments

when message weak

generate more counterarguments and fewer support arguments

descriptive research

generate numbers and relationships

examples of disposition

give away, sell, lend

music

global, jingle and now popular music; stimulate a variety of positive effects; good CS for classical conditioning (tags=retrieval cues); put consumers in positive mood and attitudes, generate positive feelings like happiness, stimulate emotional memories

affective response

go with gut what is appealing to emotions

laddering

going deeper, why is that important to you?

consumer behavior involves

goods, services, activities, experiences, people, time (scarce resources), and ideas (tangible=soap and intangibles)

research designed for consumer protection

government and consumer advocacy groups

important properties of categories

graded structure (some represent categories better than others), prototype (best example of category)

age cohorts

grandparents of depression vs baby boomers of the 60s, gen x vs gen y

allowing incorrect inferences

green packaging=allowing us to make inferences we know incorrect,

knowledge structure: categories

group objects together that share certain characteristics; defined division within an orderly classification of objects with similar objects in same category

norms are

group specific and situation specific; taught to us through culture and observations

AIO

grouping customers according to activities, interest, opinion

secondary groups

groups with whom we do not have direct contact; role models

pet family members

growing segment; spending doubled in last decade, designer water for dogs/name brand pet products/lavish kennel clubs/pet accessories

attitudes are important

guide our thoughts (cognitive function), influence our feeling (affective function), and affect our behavior (conative function); these attitudes guides our decisions and behavior in acquiring, consuming, and disposition

recognition needs to

have high frequency work (coke)

forming and changing attitudes

create or influence consumers attitudes toward new offering and novel behaviors when they understand how attitudes are formed; plan strategies

low effort marketing implications

create positive evaluations of brands, increase situational involvement, raise awareness of need situations, and stimulate purchasing and consumption

argument quality

credible concerns whether it uses strong argument

what affects our value

culture and ethnicity, social class, and age cohort

content and structure

culture and level of expertise influence structure and knowledge between consumers; experiences play role in content and structure of consumers knowledge

complainers

customers perceptions of problem, compnay customer relaitonships, customer psychographics, personal characteristics

generic trademarks

have lost all legal protection as trademarks because they are so commonly used, used to be brand names not anymore, aspirin and escalator

decisions that emphasize future interests may

have positive or negative implications (neglect or downplay pleasurable experiences in present)

consumer research helps marketers to

develop product specific plans and broader strategies for market segmentation, targeting, and positioning and to make decisions about the components of the marketing mix

what is psychographics

developed 60s-70s, demographics tell us who buys but psychographics tell us why they buy, consumers can share the same demographics and behavior and still be very different

these sources of influence

differ in reach, two way communication capacity, credibility

construal level theory

different levels of abstractness in the associations that consumers has about concepts (people, products, brands, and activities) and how consumer is psychological distance from concepts influences behavior

media choices influence exposure

different media outlets frame information differently

positioning of product

differentiate themselves from others in category, 7up vs coke; close to it=people like generic (cola heb similar to coke), relevant to goal (caffeine free one vs regular pop)

interviews

direct contact with consumers, appropraite when topic is sensitive/embarassing/emotional

normative influence types

direct influence (manipulate us), vicarious observations (observe others to guide behavior), indirect influence (concerned about opinions of others)

cogntive (thoughts)

direct or imagined experience, reasoning by analogy or category, value driven attitudes, analytical attitude constructution

five cognitive models

direct or imagined experience, reasoning by analogy or category, values driven attitudes, social identity based attitude generation, analytical processes of attitude construction

social class fragmentation

disappearance of class distinctions (blurred lines, mass media, communication technology)

source derogations

discount or attack source of message

information processing working memory

discursive and visually

decrease counterarguments

disrupt then reframe technqiue, disrupt cognitive processing of communication clears the way for more effective persuasion when the message is reframed; react more favorably to communciations when they are in good mood

dual encoding

do something and hear something at same time

psychological risk

does it fit with what I think of myself?

mood different than classical conditioning

does not require repeated association between two stimuli, can consumers evaluations of any object not just the stimulus

reactance

doing the opposite of what the individual or group wants us to do

habit

doing the same thing time after time

satificers

dont search for perfect solution, stop search and choose when one that is good enough

DINKs

dual income no children, growing segment, disposable income, travel and entertainment

how long will i feel this way

duration

Why Milgram Study

have task feel compelled to complete the task, defer guild to experimenter (attribution theory); authority figure=not forcing you just saying what is expected (authority cue=important)

families with young children

health foods, toys, baby gear, clothes

negative bias

heightened sensitivity to negative information

how can companies use ZMET

help connect with marketing

why categorize

help us identify new things, learn/make inferences, too much information=provides structure

emotional appeal more effective in

helping hevy users of the product access brand name

extended problem solving

high consumer effort, all 5 stages with lots of effort on each step, purchase decision is perceived as risk/personally relevant, extensive information search, careful evaluation of attributes, visit different outlets, deliberate decisions, MAO high, internal and external search, 2-8 alternatives considered; noncompensatory and compensatory rules

fasgion and prestige good

high price symolizes status, less sensitive to price and pay more

elaboration high

high thought, central route, experts/involveent high/ ad speaks to you

greater discrepancy between actual and idea

higher motivation/ability/opportunity=more likely to get consumers to act

unwilling to dispose of possessions

hoarding, product retention tendencym green consumption values

over time

hours, days, weeks, months, years

gatekeepers

household member who collects and controls info improtant to decider

user

household member who consumes product

influencer

household members who try to express their opinions and influence the decisions

dual mediaton hypothesis

how attitudes toward the ad can influence attitudes toward the brand and intentions

taxonomic categories

how consumers classify a group of objects in memory in an orderly, often hierarchical way, based on their similarity to one another

favorability

how much we like or dislike an attitude object

base rare information

how often an event really occurs on average

meta cognitive experiences

how the information is processed beyond the content of the decision

differenes in adoption: chasm model

how to cross chasm from early market to mainstream market=bandwagon effect in which momentum build to point that product becomes the standard (applicable only to discontinuous innovations)

central issue of temporal dilemma

how will the decision affect my interests, our interests, or their interests immediately compared with the future

match up hypothesis

idea that the source must be appropriate for the product/service and match the offering

fastest growing brands

ideal driven; eliciting job, enabling connections, exploration, price, impacting society

does advertising influence self esteem

idealized body images, found college students exposed to this have more idealized body images felt less satisfaction with own appearance

primary motivation VALS

ideals are guided knowledge and prnciples, achievement look for products/services that demonstrate success to peers; self expressions=desire variety/risk

do people really conform

identif line=33% more likely to say c is longer even though answer is clearly b, group think, only 1 person defects=enoguh to reason to defect, unanimous answers where people can be swayed

why when more people affected less funding

identifiable victim effect=single victim more likely to raise more monry than if helping group of people (emotion)

multiattribute model

identify relevant attributes, determine beliefs about attitude objects on those attributes; get evaluation and beliefs for each by surveying target market

reference groups and marketing strategy

identity: membership strategies focus on ordinary people whose consumption provides informational social influence aspirational: adminstrational strategies concentrate on highly visible, widely admired figures (athletes or performers) dissociative=avoidance strategies focuses on undesirable people using competitors product (who you dont want to be)

less likely to believe a source credibe

if celebrity endorses produce, hold own existing attitude confidence, high degree to generate their own conclusions, trust is lessened

opportunity to recycle

if difficult or inconvenient, consumers avoid doing so; must break old waste disposal habits and develop new recycling behaviors

me vs them

if our focus is more abstract such as strangers or society at large, decision may be framed as this

feeling will only change attitude

if you make link between feeling and product

advertising misrepresent segements of cosnumers

ignoring key segments and stereotyping key segments

recall

imagery obsession, novel names, suggest offering=easy off

fear appeals are effective

immediate action that will reduce fear, level of fear generally moderate to be effective, higher levels of involvement/lower levels of fear can be generated because consumer has a higher factors to process information; must be credible

youth

implication plastic surgery, us consumers place a high value on youth and looking young, constant striving for youth

qualitative exploratory research

in depth interviews, projective techniques, focus groups

marketers want to change attitudes

in order to influence consumer decision making and change consumer behavior

values are engrained

in us as we grow up

how can you encoruage WOM communciation

incentives, hashtags, teaser campaigns

universal set

includes all possible choices for a product category

involving messages

increase extent to which consumers engage in self referencing of related to message in their own experience (nostalgia), highly descriptive on persoanality dimensions that they consider improtant or self descriptive

focusing on future interests of others may

increase our sense of satisfaction or be congruent with our self concept as someone who is altruistic or charitable

consumerism

independent organziations, and concered consumers that are designed to protect the rights of consumers

inert set

indifference=neutral

goals satisfying

individual alone (one's own taste) vs individual group (self preservation, minimizing regret, and informaiton gathering)

another way that attitudes are generated or shaped is

individual values (environmental protection=more positive attitude towards brands that use recycled materials)

western values

individualism, family and children, youth, importance of time, work and play

green heuristic

ineffective, green packaging is friendly for environment must have done something so not effective; add Clorox to it to be effective

likable sources

influence affective attitudes

credibility of sources and company

influence consumers attitudes

affective ads can

influence their mood, brand beliefs

mood/physiological condition

influences what we buy and how we evaluate products; stress impairs info processing, can trigger need recognition (hunger), more impulse buying when in good mood

attention

information has actually been recorded, notice the information

what affects involvement/motivation

information is moderately inconsistent with prior attitudes, goals at stake=risky situations, inconsistency with prior attitudes (process messages that are moderately inconsistent with our attitudes more carefully, drastically incosnsitent=ignore and if highly consistent=may not get attention), create something new with reference to add something old

secondary data

information that already exists somewhere, having been collected for another purpose; collected first

informational social influence

information to help make decisions (WOM) and come from regular consumers but also from opinion leaders or surrogate consumers; social groups source of information

types of reference group influence

informational, normative, identification

elaboration

informtion can be transferred into long term memory if i is processed at deeper level, story line

mood can bias judgements

initial anchor for judgement (good mood=respond positively to new items), consumer judgements by reducing their research for and attention to negative information, judgements by making consumers overconfident about judgements that are reaching

When Do Consumers Adopt Innovations?

innovators, early adapters, early majority, late majority, laggards

VALS categories

innovators, thinkers, achievers, experiencers, believers, strivers, makers, survivors

how much will i feel it

intensity

subjective comprehension

interaction between what is in a message and what consumers already know

personality

internal characteristics that determine how people behave in various situations; person's unique psychological makeup and how it consistently influences the way a person reponds to his or her environment, what makes us different from one another, reflected in consumption choices

external search

interpersonal sources (friends/family), experiential (product samples/trials), independent media (reports/news), retailers=in store info, marketer dominated media=ads

ZMET potential bias

interviewer bias and small sample size (25 people)

maven scale

introducing new brands/products to friends, people ask me for information about products/sales, my friends think of me as a good source of information when it comes to new products or sales

people are

irrational; ikea=more work they like it more

stability

is the cause of the event temporary or permanent

controllability

is the event under the customers or marketers control

focus

is the problem consumer or marketer related

syncratic decision

joint decisions

representativeness heuristic

judging the likelihood of things in terms of how well they seem to represent, or match, particular prototypes; may lead us to ignore other relevant information; o Representativeness Heuristic is when decisions are based on how similar an example is to something else (or how typical or representative the particular case in question is). o Representativeness is basically stereotyping. o While availability has more to do with memory of specific instances, representativeness has more to do with memory of a prototype, stereotype or average. o Find stereotypes o About stereotyping and seeing how similar an example is to something else or how typical or representative the particular case in question is Basically stereotyping Availability has more to do with memory of specific instances, representativeness has more to do with memory o Gym marketing=put stereotype of who goes to gym o Matches representation you have in your mind=more influential o Negative representations=difficult to overcome Rename it and say over and over again this is a different category

single parent/ older children

junk foods and fast foods

Habit and loyalty

keep buying same brand; loyalty=has strong preference that habitual doesn't do • Psychological difference between habitual and loyalty • Tempt someone to change if habitual but not if loyal Habits=popular with small decisions=make things easy

enhance consumer comprehension and awareness pertaining to culture

keeping message simple, repeat message several times, presenting in different forms (verbally and visual)

Brand names used as generic terms

kleenex, clorox, band aid, so common with they are it is used as the name of the category, first on market and then become interchangebale with product, still legal protection

monomorphic

knowledgeable in a single area

disadvantages of secondary data

lack of availability, lack of relevance (not specific enough or definitions or categories might not be what looking for), inaccuracy, insufficiency; out of date

resistance of innovation

lack of human control (algorithm aversion), judgement, such drastic change, inconvenience, sunk cost, cost of getting new product

laws vs ethics

law society's values and standards that are enfroceable in courts ethics=moral principles and value that govern the actions and decisiosn of individual or group

shaping

leading consumers through a series of steps to create a desired response

emotional appeals

emit emotions; disgust powerful emotion can engender negative attitudes and purchase intentions, want to minimize shame and guilt, conflicting emotions=less favorable attitudes, positive emotions=attract consumers, negative=create anxiety

drama can increase

emotional involvement in message, chacters/plot/story, to get consumers emotionally and influence positive attitudes through sympathy and empathy

affective (feelings)

emotional processing, affective responses, attitudes towards the ad

emotional detachment

emotionally disposing of a possession

high intensity

emotions are primacy and inescapable, emotions are subjectively valid (i wont do that just because i feel it is not valid), emotions are predictable and almost universal (cultural differences, but somethings all the same=disgust), emotions are hard to override=stuck with it (hard to verbalize), shape decisions and behaviors

working memory portion

encode or interpret incoming information and keep it available for further processing, conscious information processing, limited in capacity and short lived, requires attention to retain information

underdog strategies

encourage consumer learning because new information could get people to switch brands, instigate learning through comparisons=needs strong distinct advantage, create expectations and use promotions to provide experience for customers, facilitating product trial critical if evidence unambiguous=lead to positive learning experience

persistence

endurance attitudes we hold with confidence may last for long time or brief time and then change (change easily when not loyal or know little about product; difficult if they are brand loyal or consider themselves experts)

values

enduring beliefs that a given behavior or outcome is desirable/good; guide behavior across situations and over time, usually non-conscious; don't change a lot over time; driven by culture and ethnicity

motivation

energy directed at objects, activities, or goals; energy willing to put towards something, always evokes involvement

placebo effect

energy things discounted=don't work well, trick brains into thinking things are difference, simple suggestion like price can influence people's experiences

other antecedent states

energy, cash, attitude about shopping in general

extroversion

energy, urgency, and the tendency to seek stimulation and the company of others

autonomic decision

equally likely for decision to be made by husband and wife but not both

recall example

essay test, reconstruct from memory with no cues

standards are formalized into what?

ethical codes of conduct

brand processing

evaluating one brand at a time

satisfaction definition

evaluation of product after consumption, positive evaluation of decision associated with positive affect

puffery

exaggerated claim=food not look like real thing (representativeness, availability=available in mind), americas best pasta sauce, not regulated

bachelors

exercise, entertainment

personality variables

exhibit stronger attitude behavior relationships , devote a lot of thought to actions=evidence stronger attitude behavior relationships because their attitudes will be based on high elaboration thinking; people guided by their own internal dispositons=exhibit similar behavior patterns, people guided by views and behaviors=high self monitors=adapt behavior to every unqiue situation

TORA provides

expanded picture of how, when, and why attitudes predict consumer behavior

wo models to explain how thoughts are related to high effort attitudes

expectancy value models and cognitive response model

top dog strategies

limitations on learning=advantage because consumers will confirm existing beliefs and be overconfident, avoid high motivation=specific claims that justify consumers evaluation of the brand or encourage consumers not to acquire new information=blocking exposure

what shoppers hate

lines/waiting, being forced to ask/stock outs/obscure price tags, intimidating service (unless they send positive signals)

associative network of ltm

links connect nodes (vary in strength), concepts/feelings/events stored in nodes, directional (one invokes other or not)

means end chain

links consumers knowledge about product attributes with their knowledge about consequences and values

habit involves

little or no informaiton seeking and little or o evaluation of alternatives

most companies focus on

long term profitability and broadening their focus on we to achieve sustainable outcomes (bright side outcome)

positive word of mouth=what temporal focus

long term to encourage future purchases and reinforce brand loyalty

reposition

look perceptual map and want to change, use categorization to move perceptions

problem with demographics

loses some detail=might not represent all business women (non-differentiated groups)

post decision disposal

lots of money in it; second hand markets (ebay), self storage, Patagonia=buy less campaign, donation

evaluations driven by individual events not total outcomes

lottery prefer to win twice, pay to pay fine once, better not to lose anything, if have to have lose want silver lining of small gain to reduce psych cost of loss

choice availability vs satisfaction

low choice availability= no choice can be bad=medium satisfaction (increasing as increase choice availability); limited chocice is best, then too much choice=less satisfaction

celebrity sources

low effort processing

products can advertise to remedy

low self esteem=acne solutions

normative choice tactics

low-elaboration decision making that is based on others' opinions

affect

low-level feelings

odd prices

lower than even

medium

magazines, websites, social media

reducing dissonance

make customers feel good about their purchases (follow up mailings and thank you notes, salespeople at cash registers, alumni newsletters) make customers confident about their purchases (price protection policies, warranties, return policies)

deceptive advertisng: false objective claims

make invalid claim (regulated by FTC)

alternative-based strategy

making a noncomparable choice based on an overall evaluation

attribute based strategy

making a noncomparable choice by making abstract representations of comparable attributes

99%

making income over 200K; think less because social comparison=see richer; housing icnrease in % of income/ food decease/ apparel decrease/ transportation increase/leisure same (working less not spending time on leisure)

two paths to satisfaction

manage outcome (actual)= dliver goods and manage expectations (set accurate expectations/communicate consistent messages/clear and definitive and simple messages to consumers)

sales promotion

many companies cultivates brand loyalty through sales giveaways

consumer behavior ca involve

many people, groups, take on more than one role

who benefits from bright side outcome

marketers (more revenue, more loyalty, more sales) and customers (new products and charity that the companies give back to)

marketing association code of ethics

marketers must do no harm, marketers must foster trust in marketing system, marketers must embrace/communicate/practice the fundamental ethical values that will improve cosnuer confidence in the integrity of marketing exchange system

company reputation

marketing communication do not feature an actual person, consumers judge credibility of company delivering message

nonmarketing soruces of influence

mass media=news/cultural heroines/social media; delivered persoanlly=family/friends/classmates

attitudes do not always

match values (richer individuals believe in giving back but give less % of income to charity)

implcations of materialism

materialistic people can be susceptible markeitng tactics and are interested in luxury brands Check off boxes when vacationing=went to this, do this,etc Not experiential reason Materialistic people less happy Income increases=not more happy Happiness=stays constant Fulfillment vs money spent ◊ Survival ◊ Comfort ◊ Luxury ◊ Enough ◊ Then after that the fulfillment decreases with extravance } Comparisons become painful

smell

may dislike smell=not buy or may love the addition, some want no sent, different across cultures (cola=only universal sent regarded as pleasant)

focusing on our own immediate self interest

may increase our happiness

low effort decisions

may take shortcuts and not take all steps

focusing on interests of others may frame the decision as

me or we (brand, product, company, or coworkers) /me or them (competitors or others outside the organization)

VALS helps

measure consumer actvities, interests, and enduring attitudes and values; classifies consumers by their resources and primary motivation

normative social influence

meet society/group expectations

retrieval errors

memories can be incomplete or distorted or wrong

explicit memory

memory achieved by active attempts to remember=recongition and recall

implicit memory

memory for things without conscious awareness

redundant cues

memory is enhanced when the information items to be learned seem to go together naturally (coke in cup)

sleeper effect

memory of source can decay more rapidly than memory of the message; low credibility sources can be effective

memory decay

memory strength deteriorates over time because it has not been used (forget events from long time ago)

myth of family tech markets

mentor (education tools), limiters (no technology), enablers (gives them technology); affects what customers shop for in features

low effort affective may be due to

mere exposure effect, classical and evaluative conditioning, attitudes towards the ad, and consumer mood

comparative messages

messages that make direct comparisons with competitors

conjunctive model

minimum cutoffs on multiple dimensions, start with all items and reject bad options, crossing off things that dont meet rules, select one that meets all criteria, more realistic

mood vs emotion

mood: low intensity, simple complexity, not focused/peripheral directionaltiy, no physical manifestation emotion: high intensity, complex, specific to stimulus directionality, yes physical manifestation

positive mood tend to think

more abstractly

dressing down

more approachable/friendly

choice depletion

more choices available=worse decision made

if expert want

more choices, for others more option-hard to understand

existing products

more effectively influence with emotional appeals

interruptions in consumer experience makes pleasant experience seem

more enjoyable when resumed

happy

more impulsive and risk taking

men exposed to sexual cues exhibit

more impulsive behavior and more likely to buy or consume right away rather than waiting

affective responses

more influential than cognitive responses in shaping consumers attitudes toward a product, important when ad builds toward peak emotional experience

lead to a positive ad in the context of high effort

more informative ads tend to be better and generate positive responses which positive influence on brand attitude (functional dimension), like=positive feeling hedonic dimension, interesting=curiosity and attract attention

women seen as

more popular and credible than male endorsers

more shelf space heuristic

more popular that's why there is so much

self positivity bias

more positive about ourselves than anything else, smoking bad but wont hurt me; marketing=need to say public, family, then themselves or elaborate on situation (imagine the situation)

who benefits from study of consumer behavior

non profits/marketing managers ethicists/advocacy groups/ public policy makers/regulators/politicans/consumers/ academics

casual research qualitative

none

preattentive processing

nonfocal, pay attention to without knowing paying attention to it, corner of eye, mere exposure effect=familiarity of liking, not subliminal=below threshold of perception

subjective norms are influenced by

normative beliefs and motivation to comply with this significant person

low effort processing

not actively process message arguments or become emotionally involved

indirect actions

not conscious, placebo pills, effectiveness of product=if think product effective think it cleaned/performed better

is focusing on me/we/them bad?

not intrinsically

consumer behavior about single individual?

not necessarily can have combinations of people who may be involved in purchase (group friends/family)

interference

not remembering which features go with which brand or concept due to semantic networks being too closely aligned, more other things get into network=more everything decays

observations

not talking, recording observations in an objective manner; not useful when investigating complex social settings, less useful for studying well defined hypotheses under specific conditions

involvement is not just products

product categories like cars, brands (loyalty=spend more money, spread message, accessories)

What affects normative influence strength?

product characteristics (more influence on what is bought if public consumption and a luxury product), consumer characteristics, group characteristics (coercive power, collectivism, close groups)

why dispose

product failure/loses functional value, product becomes technically obsolete, availability of/desire to upgrade, change of life, patagonia=minimize consumption, fully depreciating the mental value of a durable good

word of mouth

product information transmitted by individual; more reliable/trustworthy form of marketing; influences 2/3 of all sales; powerful when we are unfamiliar with product category; viral marketing; powerful but difficult to control; can be very broad (age) or very local (osu)

determinant attributes

product or service features that are important to the buyer and on which competing brands or stores are perceived to differ; marketers educate don this=born on date or new attribute to differentiate themselves

why do people engage in wom communciation

product related conversation factors: high involvement with product (pleasure), knowledgeable about product (impressing others), genuine concern for others (avoid wasting money), with the expectation that they will receive informaiton in return (reciprocation), to get paid (opinions.com), fund

if stuck in early adopter level

product will be specialized product (niche), need to get to early majority

mood

prolonged state that the person happened to be experiencing that is not directed to particular object (low intensity)

comparative ads

provide link so can be bad thing

customer oriented strategy

provide value for customers, understand groups in marketplace so they can develop strategy that will provide such value; suitable strategy marketers need research to determine how well it is workign and whether it is delivering expected results

consumer behavior covers four basic domains

psycho-logical core, the process of making decisions, consumer's culture, and consumer behavior outcomes and issues

positioning

psychographics (segmenting and positioning)

factors that affect consumer behavior

psychological core, process of making decision, consumers culture, and consumer behavior outcomes

what affects consumer behavior

psychological core, process of making decisions, consumer's culture, consumer behavior outcomes (affect acquisition/usage/disposition)

situational elements

psyhical surroundings, social surroundings, time, purchase task definition, and antecedent states

unethical examples

puffery, missing infromation, allowing incorrect inferences, bait and switch, incorrect statements, misrepresentng selling intent, advertising to children on technology

perceiving

put meaning to object we perceive; interpreting what to see, shaped by prior knowledge;

role playing

qualitative; take yourself out of that situation; projections; pictures=certain emotions

factors affect the credibility of message

quality of argument, whether it is one or two sided message, comparative message

to get valid information about sensitive topics

randomized devices =if heads=answer truthfully

classify innovation by breadth

range of new and different uses for particular product; campbells soup=narrow; iphone=high

lexicographic model

rank attributes by importance and compare one at a time, best on most important attribute to retain to repeat; best on the most improtant attribute; ranking by not setting minimum

elimination by aspects

rank attributes by importance, set minimum level on most important attribute, eliminate brands that dont meet cutoff

availability heuristic

recall information that is more accessible, but not necessarily diagnostic or accurate, more available=more likely

cued recall

reconstruct from cues (marketing cued by brand names=what like/which cheaper)

to reduce risk

reduce uncertainty, reduce perceived consequences of failure (returns/warranties), enhance risk perceptions in purchase domain (risk not buying right brand icnrease motivation to purchase ifnormaiton, risk not buying product=icnrease probability of buying)

attitude accessibility

refers to how easily and readily an attribute can be retrieved from memory (movie last night or attitudes about important events)

less likely to decay if

rehersed

utilitarian aspect

related to products function

hedonic aspect

related to the experience of product use

conjoint analysis

relative improtance and appeal of differnt levels of offerings attributes

working memory

relevant, consumers are motivated to process further and keep it active

recircuation

remember it because you encounter it a lot, 6 times for remembering

baker baker paradox

remember job rather than name

memory is selective

remember the good things that happened

memory can be distorted

remember things that did not happen

brand awareness needs

reminder advertising

weaken node strength

rename, not talk about it

why do we care about post purchase

repeat purchases (5 times more expensive to get new customer), low involvement purchases (attitudes can be found after choice), WOM (influences 2/3 of sales, powerful when we are unfamiliar with product category) (negative >positive)

how to reduce decay

repetition of information (advertising) and by repeatedly retrieving it from memory (circulation)

imagery processing

represent it visually as pciture, smell, how it feels, sounds, taste

script

represents our knowledge of sequence of actions involved in performing an activity; allows you to complete task quickly and easily; do something first time=longer

peripheral route processes

require little thought, and therefore predominate under conditions that promote low elaboration. These processes often rely on judgmental heuristics (e.g., "experts are always right") or surface features of a message (e.g., the number of arguments presented) or its source (e.g., their attractiveness). • In the peripheral route, the amount of elaboration is limited and concentrated on peripheral cues. This does not preclude opinion formation, but it involves a different mental process

discontinuous innovation

requires new learning and consumption patterns by consumers, telegraph to telephone, flying, microwave, rare and big

ethnographic research

researchers interview and observe how consumers behave in real world surroundigns

research desirgned for application

retailers, government data sources, research foundations and trade groups, syndicated data services and advertising agencies and external marketing to consumer good companies

experts

richer associative network with more associations and more concrete and abstract associations linked to concept than novices have, more graded and redefined taxonomic structure of categories, exhibit more flexibility in activating suitable associations and categories than novices; experts make finder distinctions among brands and evaluate more favorable when product infromation is presented in such a way that they feel they are progressig toward their goal

experiencers

risk seeking, enthusiastic, impulsive

expressive roles

roles that involve an indication of family norms, choice style or color

instrumental role

roles that relate to tasks affecting the buying decision, when and how much

marketing ethics

rules of acceptable conduct that guide individuals and organizations in making honest, fair, and respectful decisions about marketing activities

expectancy disconfirmation model

s=actual-expected

symbolic purchases

say something about myself

low motivation

search and attention limited, not a lot of effort put in, behaviors different, don't elaborate on messages, repetition and message source crucial, focus on effort of decision

to put products into evoked/awareness set

search to get out of unawareness set

memory is constructed and reconstructed

see yourself in memory, differ from reality (accentuate something, eliminate others, add some things), consistent with existing ideas/expectations and schemas/mental models of how world works, motivated forgetting of ethical attribute information (environmentally conscious=forgot rainforest)

early majority

seek innovations that offer incremental, predictable improvements on existing technology, price sensitive, willing to wait to adopt; deliberate, many informal social contacts

vicarious exploration

seeking information simply for stimulation

bundled prices

seem more cost effective

geodemographic segmentation

segmenting potential customers into neighborhood lifestyle categories by similarity (suburban vs rural vs urban); need to look at lifestyles not just demographics (mysegments.com)

targeting

select the segment or segments to enter; targeting affected and affects things but strategic decision not consumer based decision

self actualizaiton level

self fulfillment

memory timeline

sensory memory to processing to short term memory to rehersal or elaboration to long term memory

low-effort hierarchy of effects

sequence of thinking-behaving-feeling

traditional hierarchy of effects

sequential steps used in decision making involving thinking, then feeling, then behavior

brand names

serve as retrieval cues

sex

sexual suggestiveness and nudity; consumers prefer mildly provocative ads, men positive attitude toward sexual cues but not like committed relationships

helpful other-focus

sharing of ideas, such as answering questions of friends or strangers posted on social media or posting product reviews that will help others make good purchase decisions

harmful self focus

shoplifting; little harm to society but this illegal and unethical behavior costs the store money=raises prices=penalizing other shoppers while shoplifter benefits

consumers experience a loss, how will they perceive time period until next purchase

shorter because they want to remove negative feeling

examples of dark side

should marketers advertise to children, download or share digital entertainment not officially purchased (benefit me or when and deprive them of revenue)

family sizes are

shrinking

increase interference

similarity between products, brands, and ads

choice tactices

simple rules of thumb used to make low effort decisions

price related tactics

simplifying decision heuristics that are based on price

nontraditional family structures

single person households, DINKs, Unmarried homes, same sex households, sandwich generation, boomerang kids

attitudes and behaviors not always linked

situational factors (external=barriers price), sensory stimulation, rewards/punishments, actions of others, does fit needs, dispositonal factors (internal like genetics/personality)

sexual suggestiveness

situations that either portray or imply sexual themes or romance

laggards

skeptics, resist innovations; fear of debt, neighbors and friends are information sources

system 2

slow, deliberate, analytical and consciously effortful mode of reasoning about the world Lazy endorses their heuristics answer without bothering to scrutinize whether it is logical Use this sparingly=alarm bells to engage this and something needs to be scary

newlyweds

small appliances and home furnishings

olfactory

smell of bakery

sensory registry/memory

smell/taste/1-2 sec, need to process it in short term to memorize it

when marketers and consumers make decisions, they can face conflicting priorities and outcomes, attempts to resolve these conflicts can raise ethical issues like

social and temporal dilemma

Is income or social class a better predictor of consumer behavior?

social class predicts symbolic purchases with low to moderate prices, income predicts major expenditures with little symbolic meaning, both income and social class needed to predict purchase of expensive/symbolic products, small things=symbolic, and large=icnome prediction

have vs have nots

social class, determined by income/family background/occupation; determines how much we spend and how we spend it

idealized body image

social comparison theory, individuals have a drive to compare themselves to other people

how to get to mass market

social media (visible/educate people), more affordable, alternatives less attractive, more accessible, try out, social risk=go viral

secondary needs

social, personal, and self actualization

quantitative

survey data (advantages=attitudes knowledge, intentions, brand awreness) (disadv=social desirability biad, not truthful, correlation not causation); experiments

primary data types

surveys, focus groups, experiments, and like to support their own marketing decisions

fraudulent symbol

symbol that becomes so widely adopted that it loses its status

using: whether and why use certain products

symbolize something about who we are/what we value/what we believe

performance related tactics

tactics based on benefits, features, or evaluations of the brand

affect-related tactics

tactics based on feelings

divisible attention

talk on phone and clean house, follow two conversations in two different languages

taste

taste tests, adding descriptive words to marketing communication about foods

unhealthy heuristic

tasty; infer fried is tasty

nudity

technique often used by brands within industry

perceptual maps

tell you how your brand and your competitors brands are currently perceived, how describe on attribute, what is consumers ideal

disposition time period

temporary (loaning or renting) or involuntary (losing or destroying item)

confirmatory bias

tendency for expectations to guide performance perceptions, horoscopres, see what you want, supports their prior expectations

halo effect

tendency to assume that if one attribute good=good on everything; tall people=better jobs, brand extensions rely on halo effect

resources vals

tendency to consume goods and services extends beyond age/income/education; self confidence intellect/novelty/leadership/vanity

hypothesis testing

testing out expectations through experience

zone of acceptance

the acceptable range of prices for any purchase decision

conspicious consumption

the acquisition and display of goods and services to show off one's status; veblen theory; time for leisure tht is the way you signal to the world you are high class; today signal with houses/clothing/cars; needs to be visible to be symbolic product

negative word of mouth communication

the act of consumers gyring negative things about a product or service to other consumers

perceived relative advantage

the degree to which a product is better than the product it replaces (+)

compatibility

the degree to which a product is consistent with existing values, existing consumption experiences, and or existing technology (+)

ease of trialability

the degree to which a product may be experimented on with limited basis (+)

observability

the degree to which product usage and impact are visible to others (+)

perceptual fluency

the ease with which a stimulus is perceived after repeated exposure

associations can also influence

the emotions (fat free ice cream=not good)

disconfirmation

the existence of a discrepancy between expectations and performance

law of small numbers

the expectation that information obtained from a small number of people represents the larger population

tie strength

the extent to which a close, intimate relationship connects people; weak=good to advertise across networks

informational influence

the extent to which sources influence consumers simply by providing information

perceived risk

the extent to which the consumer is uncertain about the consequences of an action, for example, buying, using, or disposing of an offering; perfomance, physical ,social, psychologicla, time risk, and fianncial risk

dissatisfaction

the feeling that results when consumers make a negative evaluation or are unhappy with a decison

marketers need to break through clutter

to get attention

ego-focus reponses lead

to more favor

shopers love

to touch and trial, mirrors, discovery, bargains

value system

total set of values and their relative importance

focus groups

trained moderator with 6-12 respondents to discuss marketing problem by responding and reaction to each other

strivers

trendy, approval seeking, disenfranchised

touch

trial sizes, samples, demonstrations, exhibits

financial records can be unethical t/f

true, feel pressure to focus on now and me/we, inflate financial results=bankruptcy

sources credible

trustworthiness, expertise, and status

more effective in central route

trustworthiness, expertise, status, matching product and endorser, credibility,

missing information

truthful claim made in an ad can still be deceptive, what they didnt say

older couples/bachelors

trvael, entertainment, home maintenance services

sadness

try to get out of promotion focus, take risk and do different things, risk/high reward options, promotion focus=seeking rewards

how easily understand the passage

try to read procedure=just give information not memorable

variety seeking

trying something different

central route processing

type of information processing that involves attending to the content of the message itself

inept

unacceptable

repeated exposure reduces

uncertainty about stimulus and increases customers opportunity to process it and that these factors are what affects consumers attitudes rather than familiarity

steps in classical conditioning

unconditioned stimulus (meat powder) to unconditioned response (saliva) if US is paired with conditioned stimulus (bell) get conditioned response (saliva)

segmenting consumers: psychographics

understand why? values/personality/life styles (can same demographics be further segmented based on the why's)

attitude toward the ad

understanding the affective bases of attitudes in low effort situations; like as so they transfer positive feelings from ad to brand(globally acceptable); may be the best indicator of advertising effectiveness

set diagram

universal to awareness to consideration and inept to choice set

exposure

unless exposed to idea or ad, can't pay attention to it; process by which consumer comes into physical contact with the stimulus we have the ability of noticing the information

in low effort situation consumers

unlikely to think about what the product means to them, relate empathetically to characters in ad, or generate arguments against or support brand message

messages weak

unlikely to think that they offer credible reason for buying

social class

upper class values giving back, but poor give more as a percentage

how social class changes

upward/downward/social class fragmentation

greenwashing

use green sustainable marketing to make things appear green; certified, hidden tradeoffs, smoke and mirrors (not accurate), vagueness, false labels, irrelevant attributes, bold lies

change normative beliefs

use others judgement to change your mind

humor

used a lot in tv and is extensive, increase cosnumers liking, more appropriate for low involvement offerings in which generating positive feelings about ad is critical; unless humor tied to product=ignore the brand

family life cycle not so simple anymore

used to be: single to married without childre to married with children to dependent/kid now: many differet types of homes

compensatory processes

utility mode=maximize utility, good attributes compensate for bad/low attributes

what will i feel

valence (good or bad), nature of feeling(specific emotion such as happiness)

VALS

value and life style survey, 4 demographic and 35 psychological items

marketers want to know___ about usage

whether they find it effective, control their consumption, and how they react after using it (WOM +/-)

consumer behavior involves many decisions

whether to acquire/use/dispose of offering; what offer to a/c/d of; why a/u/s of an offering; why an offering is not a/u/d of; how to a/u/s of an offering; ways of acquiring an offering; ways using an offering; ways of disposing of an offering

the totality of decisons

whether, what, why, how, when, where, how much/how often/how long

behavior is influenced by behavioral intention

which is influenced by attitudes toward the ad and subjective norms

purchase task definition

why are you buying for self or gift; unplanned buying

census

widely used, demographics see how population shifts

social risk

will it hurt my social standing?

performance risk

will the product perform?

humor more effective

with certain audiences than others; younger more educated males respond moe positively, used around globe

VALS change

with life stages

projective techniques: when direct questions fail

word association, sentence completion, cartoon test, third person techniques/role playing, consumer drawings, thematic appreciation test, brand personification, collages, photosort, write obituaries, carry on both sides of conversation with a brand, ZMET

how to identify needs

word association, sentence compltetion, brand personality with zmet or personality collages, in depth itnerviews

good reputational influneces

work to develop a positive image though corporate advertising; check to see if source and message credible

lifestyle dimensions: activities

work, hobbies, social events, vacation, entertainment, club membership, shopping, sports

false objective claims

wrong and regualted by laws

Is consumer behavior dynamic

yes, sequence of events occur over time

prospect theory rules

• 3 Rules of DM: Individual Events o Rule #1: People act differently when something is framed as a loss vs. a gain o Rule #2: Losses loom larger than gains o Rule #3: Evaluations are driven by individual events, not total outcomes

ways of acquiring an offering

• Consumers decide whether to acquire an offering , how decide to pay • Related to consumers buying decisions=show consumers can acquire an offering in other ways • Sharing is a form of acquisition=sharing prossessions within family of sharing video on social media

changing attitudes to change behavior

• Desire consistency between our attitudes and behavior • When they are different we suffer from cognitive dissonance (discomfort) o To reduce=change attitude or behavior

ways of using an offering

• Ensure that their offering is used correctly • Improper usage can cause health/safety problems • To make warnings more effective have to understand how consumers process label information

reference point

• Loss or gain determined by external reference point • Determines whether something is coded as a "gain" or a "loss" • Used to make evaluations

iconic

things we see, drive past sign and see quickly

discursive processing

think of object and represent it with the word

counterargument

thought that disagrees with the message

cognition vs affect

thought vs emotion

elaboration likelihood model

thought, central vs peripheral

support arguments

thoughts that affirm the claims made in the message

source derogrations

thoughts that discount or attack message source

cognitions

thoughts we have about information received from external source or info from memory; provoke thinking about product and stimulate positive product attitudes

most demonstrations of mere effect have occurred in

tightly controlled laboratory studies, some experts question whether it generalizes to real world

implications In importance of time

time is a currency (resource we try to maximize), sell time/simplify life to save time=popular

Perspective matters

time perspective for immediate or delayed consumption (immediate=concrete) (future=want bigger assortment); distance (closer want larger options); only way to get them to want smaller assortment=choice before looking at options

opportunity

time, distractions, amount of infromation, compelxity, repetition, availability of offering, situation factors (affect ability to process info), affect ability to act (make pruchase)

need balance between present and future T/F

True

expectation

belief about how a product/service will perform

attitude toward the act is influenced by

beliefs about consequences of an act and the evaluation of the consequences of an act

low effort processing occurs

below conscious awareness

more choices

better finding what i want, lower prices, higher quality options, more effort

does segmentation mean that you have to appeal to everyone

no just putting people into categories, but don't need to target everyone

how much, how often, and how long to a/u/d of an offering

Make decisions about how much of good or service they need, how often it is needed, how much time they will spend Usage decisions vary between persons, cultures Sales of a product can be increased when the consumer uses larger amount of the product, uses the product more frequently, or uses it for longer periods of time Bonus packages may motivate consumers to buy more of a product • Food productspmore likely increase consumption when the stockpiled item requires no preparation • Usage also increase when cosnmers sign up for flat fee pricing covering unlimited consumption of services o Many consumers who choose flat fee programs overestimate their likely consumption, they often pay more than if they had chosen per usage pricing Consumers experience problems because they engage in more acquisition, usage, or disposition than they should • Compulsion to overbuy • How consumers ability to control consumption temptations and what happens when self control falters

interdisciplinary influences of study of consumer behavior

Many different perspectives/fields: Marketing, Psychology, Sociology, anthropology, neuroscience, economics, statistics

where to a/u/d of an offering

More choices of where to acquire/use/dispose of an offering than the have ever had before • Internet=where acquire/use/dispose of goods o Convenience or the price or to acquire unique product Make decisions about where to consume various products • Need privacy=stay home, wireless=phone calls Make decisions regarding where to dispose of good • Older consumers=what will happen to their special possessions after their death and about hwo to divide heirlooms • Recycling unwanted goods

satisfaction actions

Repeat purchase intentions Increased positive WOM Basis for positive emotional connection to the brand and brand loyalty

how marketers improve memory

Simple message Repetition/recirculation (head on) Rehearsal/elaboration Uses imagery Chunking=1800flowers

non compensatory

Simpler decision models (but sill fairly high effort) Being bad on one dimension cannot be made up for

whether to a/u/d of an offering

Spend or save/how much decide to spend is influenced by their perceptions of how much they spent in the past Consumer spending by age Decisions about whether to acquire, use, or dispose of an offering are often related to personal goals, safety concerns, or a desire to reduce economic, social, or psychological risk.

factors include who gets blamed

Stability: is the cause temporary and permanent Focus: marketer/brand's fault or my own? Controllability: marketer/brand control?

self positivity bias def

Thinking bad things happen to other people, but not to us Reason why people smoke, drive drunk, speed, bake in the sun o (Social) Marketing Implication: Have to convince people they are indeed at risk Ask them to calculate population risk, then friend's risk, then their own risk Imagine or elaborate on situation

when to a/u/d of an ofering

Timing of consumer behavior depend on perceptions of and attitudes toward time • Time for me or others • Acquiring or using an offering is planned or spontaneous • Weather, time of day • Our need for variety can affect when we acquire, use, or dispose of an offering=sandwich today or not • Transitions=graduation, birth, retirement, death • Affected by knowing when others might or might not be buying or using it o Choose to go to gym when we know the other will not be doing so o Buy when on sale o Waiting to cosume pleasurable product=increases our enjoyment of its consumption Acquire a new, improved version of a product we already own • Dififcult when current model still works well or has sentimental value • Affect whether and when onsumers upgrade by providing economic incentives for replacing older products

why an offering is not a/u/d

Try to understand why consumers do not acquire, use, or dispose of an offering Consumers who want to acquire or consume offering are unable to do so because what they want is unavailable Ehtnics and social responsibility can also play a role May want to avoid products made in factiories with questionable labor practices

what offering to a/u/d of

Us household spends an average of $138 per day on goods and services Choose among products or service categories (food vs music), between brands (kindle or nook) Choices multiply daily as marketers introduce new products, sizes, and packages

dissatisfaction actions

Voice Response Complain to firm Product returns Private Response • Complain to friends (negative WOM), boycott firm Third-Party Response • File official complaint, take legal action

most famous products that failed focus groups

the Seinfeld pilot (needed a "stronger supporting cast") the Sony Walkman Baileys Irish Cream the ATM ("too impersonal") the Herman Miller Aeron chair

Milgram Electric Shock Study

"teachers" instructed to teach "learners" by shocking them shocks ranged from 15V - 450V all subjects expected to disobey by 135V none expected to ever go above 300V teachers 63% gave full shock and 65% ignored heart condition

% off better than

$ off

retrieval is affected by

(1) Characteristics of the stimulus itself (2) what the stimulus is linked to (3) the way the stimulus is processed (4) consumers characteristics

antecedent states

(what do you bring into buying the situation in terms of mood, physical states, etc)

segmenting consumers: demographics

(who?) observables=age, gender, family structure, social class/income, race/ethnicity, geography

Influence of Consumer's Prior Expertise on Search

- Moderately knowledgeable consumers tend to search more than product experts and novices Experts: selective search Novices: often just use others' opinions

continuous innovation

- Only minor changes in behavior are required for use - No new behaviors must be learned - Limited effect on existing consumption patterns package changes, different versions, different flavors, do this to keep up with needs

focus group purpose

- engage in brainstorming - generate ideas - uncover attitudes and opinions not measure attitudes can make misleading generalizations using too small sample size open ended questions

factors affecting informational influence strength

- product characteristics (complex) - consumer and influencer characteristics (expert) - group characteristics

3 things necessary for causation

1.) temporal precedence 2.) covariation of cause and effect 3.) rule out alternative explanations

Unmarried homes

1/3 births to unmarried women

weights positive experiences different than negative

12 positives for every negative experience

innovators=when to adopt innovations

1st to hear about and acquire new products, adventurous, not afraid to try something new; visionaries/hgiehr educated/use multiple info sources

pepsi refresh campaign

2010 super bowl didn't air commercial, applications for grants instead, such a positive response and media coverage expanded internationally in year 2, supercharged fundraising and volunteer efforts of community groups working on socially responsible projects

children as decision makers

3 distinct markets: primary (own decisions), influence (parents), future market begin making brand connections as early as 8 years old

ZMET process

6-8 pictures that reflect thoughts and feelings; process topic then go through 1 on 1 interview; metaphors; after interview=create collage=executive summary of ideas

wealth

90% of wealth owned by top 20%; not equally distributed

Offering

A product, service, activity, experience, or idea offered by a marketing organization to consumers.

neuroticism

A tendency to easily experience unpleasant emotions such as anxiety, anger, or depression.

ZMET (Zaltman Metaphor Elicitation Technique)

A visual research technique used in in-depth interviewing that encourages research participants to share emotional and subconscious reactions to a particular topic

Michelin tires ZMET

noah arc, container= holder of safety for their children; connection

sensory marketing

process of systematically managing consumers' perception and experiences of marketing stimuli

specificity of attitudes

Attitudes tend to be good predictors of behavior when we are very specific about the behavior that they are trying to predict; measuring attitudes toward skydiving in general would be less likely to predict behavior than measuring attitudes toward skydiving lessons

TORA equation

BI=behavior intention= sum attitude (belief*evaluation)+sum(normative beliefs * motivation to comply)

Best Buy example psychographics

Barry=huge entertainment sections; Jill=play area; Bb4b=technicians; find most profitable group for each store and then customize store to parameters

availability bias

Basing judgments on information that is readily available what you have been exposed to

attractive sources

Beauty sells Increases believability and actual purchases

concern for welfare of consumers

Federal Trade Commission (FTC) Bureau of Consumer Protection (BCP) Food and Drug Administration (FDA) Federal Communications Commission (FCC) Environmental Protection Agency (EPA) National Highway Traffic Safety Administration (NHTSA)

makers

Homegrown, self sufficient, macho, family oriented

culturally constituted product meaning

Can come from marketer-dominated sources and non-marketer dominated sources (opinion leaders, the media); stella artois=high end beer because glass

avoidance-avoidance conflict

Conflict that results from having to choose between two distasteful alternatives

inherent conflict?

Conflicts often arise between the goal to succeed in the marketplace and the goal to maximize consumer well being

Should Marketers Pay Attention to Special Possessions?

Consumers will not sell at market value Purchase with little regard for price i.e, price insensitive Few (if any) replacements Will not discard even after lose functional value Consumers personify special possessions e.g. give them names, use a masculine/feminine pronoun when referring to them

physical surroundings

Crowding, lighting, store layout, presentation, music playing, number of registers open, concrete physical and spatial aspects of environment that encompass a consumer activity, atmosphere to emotional response (pleasure/displeasure, arousal/boredom) to behavior (time in store, liking of store, buying)

ethical codes static? T/F

False, growing movements about environmental concerns and the treatment of employees change the ethical codes people follow

unethical behavior is illegal T/F

False, may not be illegal but violates generally accepted rules of conduct or formal ethical code observed by marketer, dishonest/unfair/disrespectful

external secondary data

Data collected by outside agencies such as the federal government, trade associations, or periodicals; what strengths and weaknesses are

Internal Secondary Data

Data collected by the individual company for accounting purposes or marketing activity reports; demographics of customers; help line; good starting point

psychographics used to

Determine market segments Determine consumers' reasons for choosing products Fine-tune offerings to meet needs of different segments Determine how to most effectively communicate with segments

Marketers can increase self-referencing by

Directly instructing consumers Using the word "you" in an ad Asking rhetorical questions Using visuals of common consumer situations

time risk

Do I have the time to invest in it?

direct or imagined experience

Elaborating on actual experience with a product or service (or even imagining what that experience could be like) can help consumers form positive or negative attitudes.

family and children

European and asian parents tend to value education more than American, American parents=fun childhood and place a high value on children

family life cycle effects on buying

FLC model categories show different consumption patterns

hindsight bias

I knew it all along, overconfidence, look back at events and believe you predicted correctly (inflated by 15-20%), rely on intuition in future

decision delay

If consumers perceive the decision to be too risky or if it entails an unpleasant task, they may delay making a decision; too many attractive options

income partly related to social class

Income increases as age increases Older workers are not in higher social classes than their younger counterparts Dual-career families may have higher income but not higher status

by decision-making units

Information gatherer, influencer, decider, purchaser and user

thinkers

Information seeking, satisfied, reflective

physical risk

Is it safe?

what can you do with consumer behavior

Knowledge and data about customers identify threats/opportunities to a brand and help to define your market (market segementation)

emotional reactions

MAO and processing can be high here as well; strong emotional processing when affective involvement is high, feelings more likely to influence attitude when they fit with or viewed as relevant, reviewed under extreme time pressure, if relevant to memory

top 10 icons

Marlboro man, Ronald McDonald, green giant, betty crocker, energizer bunny, Pillsbury doughboy, aunt jemima, Michelin man, tony the tiger, and elsie=borden diary products

heuristics

Mental shortcuts or "rules of thumb" that often lead to a solution (but not always).

limited problem solving

More straightforward/simple Lower risk/involvement Less search Limited shopping time/venues/# brands or attributes ocnsidered, limited search, not put effort into all 5 steps, medium MAO, mostly internal search; noncompensatory rules

system 1

Our fast, automatic, intuitive, and largely unconscious mode; heuristic; imperfect in answering hard questions

survivors

Passive, Risk Averse, Constrained

maslow hierarchy of needs

Physiological -----> Safety -----> Belonging and love -----> Self esteem -----> Self actualization

positive vs negative reinforcement

Positive- increasing behaviors by presenting positive stimuli, such as food. (coupons) Negative- increasing behaviors by stopping or reducing negative stimuli, such as shock (only special treatment to members)

Marketing 4 P's

Price, Product, Place, Promotion

examples of acquiring

Renting, leasing, trading, and sharing, borrowing, gift giving, finding, stealing

consumer ethics

Rules of acceptable conduct (such as honesty, fairness, and respect) that apply to the range of consumer behaviors

How Do Offerings Diffuse Through a Market?

S-Shaped Curve Exponential Curve; a diffusion curve characterized by slow initial growth followed by rapid increase in diffusion

advantages of secondary data

Saves time and money if on target Aids in determining direction for primary data collection Pinpoints the kinds of people to approach Serves as a basis of comparison for other data

internal search

Scanning memory to assemble product alternative information

What is STP?

Segmentation, Targeting, Positioning

peripheral route cognitive and affective

Source cognitive=appear credible soruce affective=attractive/likeable/celebrity message C: simple, schema consistent, repetition, self relevant message A: pleasant music/humor/sex

enhancing retrieval

Stimulus Processing Consumer characteristics (mood, expertise); remember something about specific brands

Knowledge Flexibility

The content and structure of knowledge are flexible and adaptable to each individual, at each occasion; depends in part on the consumers specific goals and the time to implement these goals

expected utility theory

The idea that people are basically rational, so if they have all of the relevant information, they will make a decision that results in the most beneficial result.

consumer behavior definition

The totality of consumers' decisions with respect to the acquisition, consumption, and disposition of goods, services, time, and ideas by human decision-making units (over time).

high motivation

active search, elaborate messages, focus on message content, accuracy of decisions, already processed everything, attitude change is more difficult

sensory memory

ability to temporarily store input from all five senses, stored automatically and retained only briefly (1/4 sec to several seconds)

research designed for general understanding

academci researchers

search is not always

accurate because relying on biad

memory can be confused

accurately remember certain parts and then less of other (source confusion)

about the consumption

acquisition, usage, disposition

Problem recognition can come from which stage of consumer process

acquisition/consumption/disposition

steps in operant conditioning

action to consequence to change in behavior

exposure to evidence

actually experiencing the product or service

activated knowledge varies based on time to act

associations become activated in consumers associative networks depend on time to implement goals (far away from goal=more abstract knowledge about desirability of attaining goal becomes salient); close to goal=concrete knowledge about feasibility, attaining goal becomes salient (who invite)

repetition jingle

associative learning=automatic, learn without trying; learning higher level assocaitons, much more in depth and rich=requires cognitive learning; get stored into long term memory; effectiveness decreases over time

correlated associations

associative network contains attributes that are linked in the consumers mind; affects ifnerences of brand

selective atention

at part, buss, hear name from across the room=cocktail party effect, tend to notice name and selecting to not pay attention to other objects

did you look at it once exposed

attention

cognitive or affective responses to ad to

attitude toward ad to brand beliefs and atittude toward brand to intention in purchase

equation of multiattribute model

attitude toward object= sum of beliefs about the object*evaluation of attribute importance and valence

knowledge and experience

attitudes are more likely to be strongly held and predictive of behavior when the consumer is knowledgeable about or experienced with the object of the attitude

Level of involvement/elaboration

attitudes are more likely to predict behavior when cognitive or affective involvement is high

accessibility of attitudes

attitudes are more strongly related to behavior when they are accessible or "top of mind"; direct experience increases attitude accessibility for attributes that must be experienced whereas advertising can produce accessible attitudes for search attributions when level of repetition is high

regulatory fit

attitudes can be formed through emotional route to persusasion

peripheral examples

attractiveness, likeable soruces, nudity, mood: pleasant visuals,music, and hiumor

search for

attributes (price/capabilties/qualtiy), evaluations/attitudes (evaluations from others and from memory), and experiences (past experiences)

additive compensatory rule

attributes not explicitly weighted; choose points for each attribute pounds=-1 point per pound, +1 point per $10 pick one with highest points

involuntary attention types

audio, movement, color (red or yellow) (what do you expect=color pops out unless expecting it to be colorful), size, sex, humor (quick to understand and clear), novelty (new in interesting way) (windex ad looks like it is cleaning), novel name (fcuk), novel location (pothole), prominence, position, volume, surprise, suspense, music, personally relevant

US recycles

auto batteries, office type paper, steel cans, yard trimmings, aluminum cans, tires, glass containers, plastic milk bottles

psychological reactions and neuroscience

automatic eye movements, heart rate, skin conductance

Routine Problem Solving

automaticity: decision with little or no conscious effort MAO low, not going through all 5 steps, no comparison between brands/attributes, habit, internal search only, no brand alternatives; heuristics

the big three

availability, representativeness, base rate neglect

avis

avis behind hertz, embrace second status, never called out hertz by name but accusation implicit, audience receptive to humble advertisements

same sex households

being acknowledged, marketers targeting them, mostly ignored but more and more designed and advertised

are people from states more patriot

base rate fallacy, didn't take into account state population

hierarchical structure

basic, subordinate, and superordinate (broadest)

a successful productmust

be adopted by innovators and early adopters, but most sales come from early and late majority

sexual themes can

be effective and can evoke emotional ways, attract attention and emotions like arousal; some dont like it=disgust; used carefully and not be deameaning

adoption describeds

behavior of an individual diffusion is about the whole populaton of consumers

deviant consumer behavior

behavior that is regarded as deviant if it is either unexpected or not sanctioned by members of society (whether or not the behavior is illegal or unethical)

simple messages

can be effective because consumers do not have the MAO to process much

disposition spectrum

can be physical things and anything that reflects an extension of the self, body parts, other persons, pets, laces, services, time periods, and events

research shows that the mere exposure effect

can help an unknown brand compete against other unknown brands if product performance are equivalent and consumers invest little processing effort at the time of brand choice

financial risk

can i afford it, what happens to may investment if something goes wrong

the message

can influence consumers with emotional or fear appeal

downside emotional appeals

can limit amount of product information consumers can process because focusing on emotions

limited attention

cannot be divided indefinetely, turn down radio when looking for something

operant conditioning

carrots and sticks, action associated with consequence to change behavior, +/- reinforcement

descriptive research qualitative

case studies

cognitive response model

categorizes thoughts: counterarguments/supportarguments/source derogations; more CA and SD less favorable attitudes, more SA more favorable attitudes

mental accounting

categorizing spending and saving decisions into "accounts" mentally designated for specific consumption transactions, goals, or situations; tax refund vs paycheck; sunk cost effect=a case of loss aversion; frame purchase to fit inside people's budgets

casual vs quantitative

causal=what is happening; quantitiative=measurement

ways epople process message

central and peripheral route

high elaboration (high thought)

central route, careful scrutinty determine merits of arguments, persusive outcome determined by thouhtful responses to message

classical conditioning

certain associations carry forward

aesthetic innovation

change flabor, new foods, new types of mustic

categorization

changes inferences, influences search

emotional attachment

characterized by feelings that promote a sense of closeness, bonding, and connection; stronger predictor of actual purchase behavior than brand attitudes; to develop this project brand personality that fits well with consumers actual self image

Compromise effect (extremeness aversion)

choose middle option, give customers three related choices at different prices

voluntary attention

choosing to pay attention to it, driven by motivation, personally relevant, want consumers to do this=contain infor that is important and relevant or interesting to them

experiment example

classic shopping list, nescafe=lazy/poorly organized add pie no effect

marketers continuously study consumer behavior for

clues to who buys, uses, and disposes of what goods and services, as well as clues to when, where, why, and how they make decisions

attitudes can be based on

cognitions and emotions

syndicated data services

collect information and make it available to multiple subscribers, nielsen

primary data

collected for its own purpose; collect from few people or compile data from huge samples; research with purpose=guide companies in making more informed decisions and achieving marketing results

vision

colors influence attention to and liking of product

integration of evidence

combining new information with stored knowledge

both additive and compensatory will

come out with the same results

higher risk

comes with higher prices, not always the case, something involving might be small

stuy consumer behavior

common mistakes: use of intution and common sense (easier, more vivid than collecting and analyzing data, more likely with increased experience); make decisons based on few observations, biases (projection/overconfidence/surface summaries/reasoning by analogy); people infer causality from correlations

little processing effort what factors influence cognitive reasonging

communicatin source, message, context

decision rules

compensatory, non compensatory, heuristics

why conform

desire for rewards want to be liked/be like another asume others have more info than you

experiments

determine cause and effect

database marketing

data mining=every item solve

creating needs

debeers, moving up idealm ideal state moved upward

retrieval failures

decay, interference, and serial-position effects

retrieval failures and errors

decay, interference, comparative ads

temporal dilemma

deciding whether to put immediate interests or long-term interests first; short term interests or long term interests

social dilemma

deciding whether to put self-interest or the interests of others first; me(individual), we (family/friends/employer/human beings/colleagues), them (others. competitors, people in other countries, or society at large)

ZMET uncovers

deep metaphors in minds of consumers and how consumers use metaphors to frame the world around them

complexity

degree to which a product is difficult to understand and use (-)

what increases regret

deliberation and more choice/larger consideration

what icnreases regret

deliberation, choice overload and decision paralysis, decreased satisfaction with product and less satisfaction with choice process

how to deal with bad word of mouth

deliver sincere apology, stop talking about=what something to fade stop talking about it and come do your best and then hope it dies out

companies use social media

deliver speedier, more personalized customer service, to keep customers informed, and to react to complaints; public way company listens and responds to its customers

likelihood that a particular brand is chosen

depends on whether it is remembered when consumers make a choice

emotional contagion

depict people expressing an emotion, with the goal of inducing consumers to vicariously experience that emotion; happy feeling in commercial=transfer feeling to company, person needs to experience rewards and consequences

managers need to address what in ZMET

depth deficit; lack of deep/imaginative/bold thinking in firms; fail to go into unconscious of minds; need to look for shared dimensions=deep metaphors

scarcity heuristic

desirability, run out people want it/not enough in stock; limited time only deals=scarcity is desirable

terminal values

desirable end-states of existence; the goals a person would like to achieve during his or her lifetime; attributes to consequences to values

measuring evaluations

e; what is your evaluation of the belief (good or bad) -3 to +3; evaluations of individual beliefs; can be positive or negative; one evaluation for each belief; how desirable is it that a university has a business school or is it good thing o bad thing that they have business school

values developed

early and impacted by our family, can shift as result social trends

prototypicality

easier to recognize pioneer brands, likely to be linked to many other concepts in memory

peripheral cues

easily processed aspects of a message, such as music, an attractive source, picture, or humor

why family size shrinking

education level of women, religion, availability of birth control; europe 1.5 births, divorce, older people now pursue non grandchildren activities, kids expensive, want to enjoy their life

positioning away from prototype

effective way to differentiate a brand

motivation and ability determine

elaboration; Motivational factors include (among others) the personal relevance of the message topic, accountability, and a person's "need for cognition" (their innate desire to enjoy thinking). Ability factors include the availability of cognitive resources (e.g., the presence or absence of time pressures or distractions) or relevant knowledge needed to carefully scrutinize the arguments. Under conditions of moderate elaboration, a mixture of central and peripheral route processes will guide information processing.

message context

embedded in happy tv program=evaluated more positively, how well like program=affect our feeling about ad; emotionality in store can influence our mood about the ad

decision illustrations

more quantitative in nature and rely on heuristics that we have already established o Much more likely people pick the more certain option if saving life, certain lives lost=take the chance to make the loss go away Framing shouldn't matter but it does matter LOSS/GAIN Time risk=choose airline 2 because on time 90% of time, late 15% time=choosen (take risk) If trying to deny==focus on bad to make decision If you are trying to award=find information beneficial/good and overweigh this attribute Choose/eliminate Change framing=risk taking changes

maximizers

more regret, less life satisfaction, less optimistic, more depression, worse at forecasting and more overconfident, fet paid more but less happy with jobs; anticipated regret

hedonic treadmill

more you see differences what made you happy in past will no longer make you happy in the future

promotion focused goals

motivated to act in ways to achieve positive outcomes, focus on hope/wants/ accomplishments

consumers with prevention focused goals

motivated to avoid negative outcomes, focusing on responsibilities, safety, and guarding against risk; want to focus on safety

make decision need to be

motivated, able, and have the opportunity to be exposed to/perceived/ attend to information

how long we search depends on

motivation (importance of task, involvement, perceived costs, discrepancy of information), ability expertise, opportunity=availability of information/time

steps in consumer behavior

motivation/ability/opportunity to exposure/attention/perception to categorization to attitude formation and change to memory and retrieval to decision

chunking

much easier to remember

losses loom larger than gains

mug=if own mug then higher value; merely processing an object increase its value

TORA (theory of reasoned action)

multiattribute +subjective norms. predicts behavioral intentions not attitudes, changing attitudes can change beliefs/evaluation of belief/add new attributes or new belief

expectancy value model types

multiattribute attitude model and TORA=theory of reasoned action

recognition example

multiple choice test, identify stimulus we have seen before

what do we perceive

must be at such a level that we can detect them

need recognition v opportunity recongiton

need recognition: current state move downward (snicker) (not a new ideal, bring you back to status quo), opportunity recognition: idea state moved upward

sensitive topics in surveys

need to be anonymous, underreport negative behaviors and overreport positive

short term memory

need to reherse or elaborate on these thought to make it, portion where incoming information is encoded and itnerpreted, working memory where things work and temporariy store thing; 18 sec capacity, anything up to 7 can keep here

key to oerant

need to take away reward and still maintain behavior

consumers buy things to satify

needs, products=way to satisfy need (hole so buy drill bit)

which emotions strogner

negative stronger, once put emotion behind something then i feel emotion only once donating funds stay the same (scope insensitivity)

big 5 personality traits

neuroticism, extraversion, openness to experience, agreeableness, conscientiousness

symbolic innovations

new social meaning, products and appearances, cancer bracelets, goal is to say something about itself

fab four

nike, apple, mcdonalds, coca cola`

surprise/suspense voluntary

no ending, need for closure, go and search for ending; rewind or shared (sharing content)

top 10 slogans

o "A diamond is forever" - DeBeers o "Just do it" - Nike o "The pause that refreshes" - Coca-Cola o "Tastes great, less filling" - Miller Lite o "We try harder" - Avis o "Good to the last drop" - Maxwell House o "Breakfast of champions" - Wheaties o "Does she ... or doesn't she?" - Clairol o "When it rains, it pours" - Morton Salt o "Where's the beef?" - Wendy's

top 10 jingles

o 1: "You deserve a break today" (McDonald's) o 2: "Be all that you can be" (U.S. Army) o 3: "Pepsi-Cola hits the spot" (Pepsi-Cola) o 4: "Mmm mmm good!" (Campbell Soup) o 5: "See the USA in your Chevrolet" (GM) o 6: "I wish I were an Oscar Mayer wiener" (Oscar Mayer) o 7: "Double your pleasure, double your fun" (Wrigley's Doublemint gum) o 8: "Winston tastes good like a cigarette should" (Winston) o 9: "It's the real thing" (Coca-Cola)

attitudes and behavior measured in close temporal proximity

o Attitude change over time (politics=initially no, but then yes when event comes closer) o Attitudes towards birth control Birth control big attitude no correlation between actions Pills=correlate better Say what attitude toward using birth control pills (get closer/more specific to thing trying to measure=higher correlation) • Get very specific=get .6 correlation attitude toward using birth control pills during next 2 years • Part variation that decrease correlation because situational factors (too expensive/symptoms/baby)

placebo effects

o Beliefs and expectations evoked by marketing actions, such as price changes and advertising claims, can give rise to behavioral (placebo) effects that alter the actual efficacy of products. o Marketers can take this knowledge and use it to improve the real experiences of consumers by creating an environment of positive expectations. How? Visually appealing packaging (e.g., an aesthetically designed box). Helping customers who love your brand share their satisfaction through social channels like web forums or Twitter. B2B: Hinting to a sales prospect that your company was awarded for great customer satisfaction.

Many times the decision process proceeds in two stages

o Consideration set (noncompensatory methods) to reduced consideration set (compensatory method) to choice

consumers behavior invlves emotions and coping

o Consumer researchs studied powerful role that emotions play in consumer behavior o Positive and negative emotions, specific emotions like hope, and general moods can affect how consumers think, the choice they make, how they feel after making a decision, what they remember, and how much they enjoy the experience o Emotions describe how we feel about certain brands or possessions o Consumers often use products to regulate their feelings Ice cream=pick me up o Service employees emotions can affect concumers emotions outside of awareness o Low level emotions can be very important in low effort situations o Issues related to consumer behavior can involve stress, consumers often need to cope in some way How cope with diffivult and overwhelming array of goods from which to choose, how consumers use goods to ocpe with stressful events, and how they cope with losing possessions due to divorce, natural disasters, moving to a residential care facility o Coping behavior of certain market segments who often find it challenging to understand the marketplace without being able to read

rule #1 loss/gain framining

o Consumers sometimes prefer risky options over non-risky options and vice versa Risk-Seeking: When the choices are perceived as losses (e.g., deaths) Risk-Averse: When the choices are perceived as gains (e.g., lives saved)

what factors influence consumer purchase decisions

o Context Effects: The influence of the context in which the decision takes place o Context n: the set of circumstances or facts that surround a particular event, situation, etc.

improtant things to remember for decision rules

o Different rules can lead to vastly different decisions. o Consumers use a combination of decision models - rarely if ever just one! o Consumers do not always have complete information across all options. o Consumers tend to use beliefs (subjective!!!) about attributes and their importance. o Don't always have all the information to compare o Can use subjective beliefs about attributes and their importance

• Rule 2: losses loom larger than gains

o People tend to be more sensitive to losses than to gains The loss of $10 is more significant than a gain of $10 o We go out of our way to use theater tickets that are more expensive, regardless of the show Sunk Cost Effect: Want to avoid calling it a loss o Coke wants to charge different prices in the summer compared to winter. Should they charge $1.50 in the summer and give a $.25 discount in the winter $1.25 in the winter and charge $.25 "refrigeration surcharge" in the summer Gain Framing: Same situation framed as gain is more favorable

base rate fallacy

o Prior probability is ignored when making a judgment o Place too little (or no) weight on the base (original) rate of possibility (e.g., the probability of A, given B). Generally stems from people's tendency to judge likelihood of a situation by not taking into account all relevant data and focusing more heavily on new information without acknowledging how the new information impacts the original assumption. o Base rate neglect=when look at base rate and don't take into account third variables like population levels=hard to understand sometimes o Prior probability ignored o High number of being stolen, but also high number being sold o Less likelihood of illegal immigrants committing crime but news stories=make it look like a lot

prospect theory guidelines

o Segregate gains, integrate losses to reduce psych costs, better to not have any loss, silver lining of small gain helps reduce psych issues losses loom larger than gains (own it=loss, those who dont own it=gain)

fun theory

o Short run thing o Piano stairs/sound in trash can o Teach people positive habit by being fun =can reframe thinking If forever=can lead to annoyance Once a month=scarcity heuristic o Fun is better o Square is now diamond cereal

availability heuristic in action

o You are feeling guilty about homelessness. Your friend tells you that the primary problem underlying homelessness is that the mentally ill do not have adequate care, and most homeless are mentally ill. o You give money to a foundation for mental illness instead of a homeless shelter. o You are trying to decide which warranty to buy, one for your dishwasher or one for your vacuum cleaner. o Your friend's dishwasher recently broke and put huge suds all over the kitchen floor. o You decide to buy the warranty for your dishwasher.

coupons redeemed when

procrastinate in redeeming coupons but move more quickly when deadlines closer because they don't want to regret missing out

out group homogeneity bias

o You feel people in the out-group are more like each other than they themselves feel they are. People in an out-group are all alike People in your in-group are all different Sometimes perceptual and little can be done to correct o Marketing Example: You are a man making an ad meant to appeal to women. You put fluffy pillows, kittens, and cleaning products in the ad. You are a woman making an ad meant to appeal to men. You put a basketball player, pit bulls, and cars in the ad. Stereotypes

who is more accessible to unplanned buying

o Young, unmarried adults with higher incomes do 45% more unplanned buying. o Households with larger families do 31% to 65% less spontaneous purchasing. o "Fast and efficient" shoppers do 82% less unplanned buying than the average. o If the trip purpose is "immediate needs" unplanned buying is 53% less. o Unplanned purchasing goes up by 23% if the shopping trip itself is unplanned o If the trip includes stops at multiple stores, there is 9% less unplanned buying at the second or third store. o Unplanned purchasing goes up by 44% if the shopper goes to the store by car instead of on foot.

quantitative exploratory research

observation

qualitative research

observations, subjective, smaller groups used, observations limited because you want to go in depth, interviews

innovation to

obtain a sustained competitive advantage, to meet consumers needs, to exceed consumers expectations hopefully in positive way to delight

ongoing search

occurs regularly regardless of whether the consumer is making a choice; occurs even when problem recognition has not been activated, consumer might consistently read magazines because enduring involvement

peripheral route persuasion

occurs when people are influenced by incidental cues, such as a speaker's attractiveness

indirect comparative message

offering is compared with those of unnamed competitors; improve consumers perceptions of a moderate share bran relative to other brands

dynamically continuous innovation

often involves new technology, has pronounced effect on consumption practices, film to digital camera, no changing behavior too much

loss aversion status quo bias

opt in vs opt out

extremeness aversion

options that are extreme on some attributes are less attractive than those with a moderate level of those attributes

or move actual downward

organic campagin, what doing before wasnt good enough=solution to sovle it

types of consumer researchers

organizations, government, and academics

involuntary attention activates

orientation reflex by creating stimuli that stands out from surrounding context, senses

change beliefs example

other white meat

outgroup homogeneity bias

out group is all alike; people in group=different (stereotyping out group)

attitude

overall evaluation judgement; judged on effort, direction, learned and enduring but can be modified, guide out thoughts, feelings, and behavior

attitude reflects

overall evaluation of something based on the set of associations linked to it

attitude

overall evaluation that expresses how much we like or dislike an object, issue, person, or action; learned and persistent over time

innovation examples

packaging (more attractive,different flavors, more convenient, cheaper), types, new lines of products

consumer are ___ in low effort situations

passive recipients of message and usually do not form strong beliefs or accessible, persistent, resistant, or confident attributes (attitudes may not be stored in memory=form attitudes anew each time they exposed to message)

mere presence effect

people do not even have to say anything to influence our behavior

compensatory consumption

people feel low class/powerless, buying products or services to offset frustration or difficulties in life; porsche when live in dump, low power consumers willing to pay more when products were status related, get control back for a moment

risk can be good if

people involved, people feel osmething is at riak=more motivated to process info about decision, spend more time on decision, bad if specific brand is at risk (brand risky) but other brands are not (afraid to buy your brand)

lifestyle

people patterns of behavior (highly related to values and personality); end up defining people

consumers socialized through

people socializing agents (family or marketplace)

normative influence: conformity/compliance

people tend to follow society's expectations regarding how to look/act; sex role/clothin, more likely to conform in public than in private

egocentric bias

people think like us, cant imagine how the other side is seeing the same situation differently; implications= new product introduction=if try to start with ourselves we do not represent the target market and creating ads that appeal to you does not guarantee they appeal to target market

market maven

people who are actively involved in transmitting marketplace information of all types; experts=influencers; actively involved in transmitting marketplace information of all types (stay ontop of popularity in marketplace, solid overall knowledge of how and where to procure products), specific knowledge

ability to recycle

people who know how to recycle are more likely to do so=incorrect disposal and less recycling and possess general knowledge of the positive environmental effects of recycling

knowledge

perceive it and be able to name it categorizatio

the source

perceived attractiveness important characteristic; attractive sources tend to evoke favorable attitudes if sources appropraite for offering category

problem recognition

perceived difference between actual and ideal state (motivates consumer to action)

motivation level of

perceived personal importance and or interest evoked by stimulus, personally relevant or related to self concept=involvement, drives being involved in something

rogers five factors

perceived relative advantage, compatibility, complexity, ease of trialability, observability

choice tactic

performance related tactic, habit, brand loyalty, price tactic, normative tactic, affect tactic, brand familiarity, variety seeking, and impulse buying

cognitive based decision making

performance related tactics, habit, brand loyalty, price related tactics, and normative influences

level of motivation in car example

period of buying car=highly motivated, after make decision brain deletes everything (situational involvement) vs enduring involvement (car enthusiast)

low elaboration (low thought)

peripheral route, requires little thought, rely on judgemental heuristics, use surface features of message of its source

long term memory

permanently stored knowledge, autobiographic episodic memory (memory for myself), semantic memory (general knowledge of world), implicit (skills), large storage

reference groups

person a group of people that significantly influences an individual's behavior

decider

person who actually determines what will be chosen

buyer

person who physically acquires product

MAO

personal relevance of message (motivation), relevant knowledge (ability), and cognitive resources (opportuntiy)

economics of information

perspective in which advertising is an important source of consumer information emphasizing the economic cost of the time spent searching for products; get full information and then optimize their decision, gather as much data as needed to make informed decision (most valuable=first, continue to search until cost > utility), search as long search costs<benefits

communication sources evokes favorable affective reactions

physical attractiveness and its likeability

attractiveness

physical features, sources (similar, likable, or familiar)

physical detachment

physically disposing of an item

primary needs

physiological and safety

attribute balancing

picking a brand because it scores equally well on certain attributes rather than faring unequally on these attributes

message characteristics includes

pleassant pictures, music, humor, sex, emotional content, and context

prototypes are main

point of comparison used by consumers to categorize new product

central route processes

processes are those that require a great deal of thought, and therefore are likely to predominate under conditions that promote high elaboration. When using the central route, consumers form their overall positive or negative opinions about the object of the message by focusing and elaborating on the most important, diagnostic information provided. The central route is characterized by active, conscious thought about important; outcome based on persusasiveness of argument

encoding of evidence

processing the information one experiences

influencing exposure

position within medium: back cover is most prominent place, 1st commercial best, product placement=guard down, within store end of aisle or color/cheaper/bigger=catch eye, want to be at eye level or lower for kids

goals

positive (approach), avoidance=negative, multiple goals can create conflict

influencing affectively based attitudes

positive affect=appeals that elicit low/wanting/joy negative affect=elicit fear/anxiety by stressing negative consequences

music can evoke

positive affective response depending on music structure and the style of music used and the product meanings it conveys=vary across cultures

appraoch-avoidance conflict

positive and engative aspect in single product, dessert=indulgence or delicious

direct actions

positive attitudes to approach or negative to avoid

post decision feeling

positive or negative emotion experienced while using the products or services

decisions that emphasize short term interests may have

positive or negative implications for the future (financial situation)

prospect theory

positive s curve, 0=reference point, actual value vs psychological value

conditioned stimulus

precedes the unconditioned stimulus (forward conditioning), conditioning weaker than UCS (backward conditioning), or at the same time of conditioned stimulus (concurrent conditioning)

Big 5 Personality Traits usage

predict behavior and where data mining useful=can predict personality type and personalize marketing

mere exposure effect

prefer familiar objects to unfamiliar ones. attitude toward offering should change as we become more familiar with it; explain why many of the top 30 brands from the 30s is still in top 30 today

external search types

prepurchase and ongoing search

social surroundings

presence of other shoppers in aisle, influencd by attitudes of others, mere presence effect

one sided messages

present only the positive attributes of the product

two sided messages

presenting both good and bad points; more credible and reducing counterarguments

situational factors

prevent a behavior from being performed and weaken attitude behavior relationship (not being able to afford it)

anxiety

prevention focusm preference for low risk/low reward options, prevention focus

consumers more responsive to

price decreases than increases

data collection and analysis types

primary and secondary

what makes things easier to recall in internal search

primcy and recency, protytopicality, goods and usage situations (do they match), accessibility (link strength), diagnosticity (negative>positive), brand loyalty, vividness/salience, retrieval cues

conjunctive bias

probability of two combination phrases=more likely than 1 attribute along, pick combination over just one stand along attribute, activist and bank teller picked rather than or

new belief example

probiotics in yogurt

four stages of decision making

problem recognition, information information search, decision making, and postpurchase evaluation

decision making process

problem recognition, information search, evaluation of alternatives, product choice, outcomes

acquiring

process by which a computer comes to own an offering; involves decisions about time and money; whether to buy, what/when/where to buy, how to pay

ability

process information/act on motivations depends on person specific factors: itnelligence./education/age/money...

graded structure/prototypes

some categories represent category better than others, prototype is the category member perceived to be the best example of the category, extent to which category members are considered to be representative of the category; this perception is based on shared associations (shares most associations within category and fewest in different categories), frequency this is encountered by category member, first or pioneer brand

exposure to product

some chance of being in contact with message, marketers need to select the correct media for target market; consumers can choose not to be exposed to some marketing messages=not paying attention

involuntary attention

something grabbing out attention as a reflex, consumer exposed to something surprising

salience

something stands out from larger context (bright, big, complex, moving, prominent), get to think about it=now short term memory

innovators

sophisticated, change leading, active, take charge

classical conditioning works with

sounds and pictures, music=feeling, conditioned response of good feeling, works for physiological and affective responses not complex ones; babies and puppies=good feeling

central route cognitive and affective

source C: credible, fit with product, selective Source A: attractive but fit with product message C: strong arguments, two sided, comparative message A: arousal but fit with product, fear

five key aspects of external search process

source information, extent of external search, content, search typologies, and the process or order of search

individuals and cultures differ in relative improtance placed on

specific values

personality is person

specific, we are who we are, not change over time

single person household

spend more on rent, alcohol, reading materials, health care, and tabacco

when product or service does not fulfill consumers needs they will attempt to find an explanation based on three factors:

stability, controllability, focus

parody display

status symbols that start in the lower-social classes and move upward

personal needs level

status, respect

retrieval cues

stimuli facilitates a node activation of memory, brand name or symbol=cue, changing brand=run risk of not recognizing it

attitude confidence

strength of attitude (situational)

interference definition

strength of memory deteriorates over time because of the presence of other memories that compete with it

ambivalence

strong positive evaluations of one aspect of a brand and strong negative evaluation of other aspects (someone's opinion will tend to influence us more when our attitudes ambivalent, even when we do not see that person as knowledgeable)

webers law

stronger initial stimulus the greater the additional intensity needed for second stimulus to be perceived as different

limited spreading

stronger links will be activted first and be more likely to activate; explains random thought; reason for false recall

below JND

subtle changes, downsizing, pricing increze, gradual changes

achievers

successful, career and family oriented, moderate

ahcievers

successful, career and family oriented, moderate

levels of taxonomic categories

superordinate, basic level, suborbinate, category members/prototypes (least to most)

satisfaction

the feeling that results when consumers make a positive evaluation or feel happy with their decision • Things salient and big=take space in our mind o Car crashes more common, but plane crashes more space in our mind because terrible events o When give people required number=make people think more bad things • However if they cant find 5 things in your memory=if cant come up with 3rd out of 5=rate this higher because must be good • If give blank space=list things you did right today=odds are cant list 5 things so if they don't come to mind easily=must not have been good service • If something feels difficult to come up with=tend to infer that this is less influential or less important

decision framing

the initial reference point or anchor in the decision process

optimal stimulation level

the level of arousal that is most comfortable for an individual

brand-choice congruence

the likelihood that consumers will buy what others in their group buy

performance

the measurement of whether the product/service actually fulfills consumers' needs

just noticeable difference

the minimal change in a stimulus that can just barely be detected

absolute threshold

the minimum stimulation needed to detect a particular stimulus 50 percent of the time

earlier in life consumer encounter a brand

the more quickly they recognize it, perceptual fluency is high

homophily

the overall similarity among members in the social system

diffusion

the percentage of population that has adopted an innovation at a specific point in time; cumulative adoption; riskier=takes a while to take off

fairness in the exchange

the perception that people's inputs are equal to their outputs in an exchange

consumer memory

the persistence of learning over time, via the storage and retrieval of information, either consciously or unconsciously

self esteem

the positivity of a person's self-concept; low self esteem=low expectations, avoid embarrassment, failure/rejection; high self esteem=high expectations, more risk taking, willing to be center of attention

customer retention

the practice of keeping customers by building long term relationships

disposition

the process by which a consumer discards an offering

using

the process by which a consumer uses an offering; core of consumer behavior; who/how/how much/how happy (functional vs symbolic)

affective decision making model

the process by which consumers base their decision on feelings and emotions

cognitive decision making model

the process by which consumers combine items of information about attributes to reach a decision

segmentation

the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics

retrieval

the process of getting information out of memory storage

noncomparable decision

the process of making a decision about products or services from different categories

consumer socialization

the process through which a person acquires the knowledge and skills to function as a consumer

fundamental attribution error

the tendency for observers, when analyzing another's behavior, to underestimate the impact of the situation and to overestimate the impact of personal disposition

conformity

the tendency to do what others do simply because others are doing it

serial positon effect

the tendency to recall the items at the beginning and end of a list more readily than those in the middle

instrumental values

the values needed to achieve the desired end states such as ambition and cheerfulness

actual state

the way things actually are

ideal state

the way we want thing to be

lifestyle dimensions: opinions

themselves, social issues, politics, business, economics, education, future, culture

if fail to process info or fail to rehearse

then wont make it into next section of memory

why care about difference between mood and emotion

they grab and maintain attention, empathy; emotionally invested in grandpa, guilt starts to set in, commercial toys with emotions

when marketers make decisions

they may focus on me (professional or personal goals)

if top dog is unambiguous

they simply need to reinforce of messages telling why the brand is satisfactory=explain the experience and encouragement to try it

inept set

things I don't want to buy

consideration set

things I might actually buy (not here=cant be chosen)

echoic

things we hear

conspicious waste

visibly buying products and services that one never uses

early adopters

visionaries who are less concerned about price and more concerned with efficiency; don't want to wait for new technology; leaders in social setting/sligtly above average education

reduce interference

visual and textual cues that reinforce each other

pleasant pictures

visual stimuli

paradox of choice

want more choices, but requires more effort/information overload/defer choice

functional innovaiton

want to make things easier (roomba, single servce cups)

leisure heuristic

wasteful; shouldn't be wasting time on leisure; work=productive; how not to lose productivity when on vacation; leisure time they enjoy it less=more stress and depression

social identity based attitude

way see social identities can play role

Gestalt Principles

ways for the brain to infer missing parts of a picture when a picture is incomplete

opinion seekers

we are most likely seek from someone who knows a lot about a product

any attribute can be taken to extremes thus

we need to appreciate differences

subliminal

weak evidence, absence of research, can increase creativity=priming apple logo

culture and ethnicity

western and eastern, Hispanics more emphasis on family, Chinese emphasizes extended family, Korean/Japanese more immediate family

consumer behavior helps marketers determine

what customers need, how they behave, what they think, and how they feel

ethics

what is right vs wrong

value expressive/identification

what we wish to do, wish to identify with group/person/hero

compromise effect

when a brand gains share because it is an intermediate rather than an extreme option

unplanned buying

when a shopper buys merchandise she did not intend to purchase, often because she recognizes a new need while in the store; 60-70% purchases unplanned (point of sale is crucial once customers is in the store)

unity

when all the visual parts of a design fit together

when are attitudes good predictors of behavior

when constrains on behvior (stituational or normative), when highly accessible (more strongly held), behavior is deliberate (spur of moment decision=stray), specific attitudes not general attitudes

explicit memory definition

when consumers are consciously aware that they remember something, consumers remember that they visited particular website and what they ordered from site

low effort situation

when consumers are either unwilling or unable to exert a lot of effort or devote emotional resources to processing the central idea behind a marketing communication

when 2 sided arguments effective

when consumers are initially opposed to the offering (have negative beliefs) or when they will be exposed to strong countermessages from competitors

truth effect

when consumers believe a statement simply because it has been repeated a number of times

emotional appeals most effective

when emotional arousal related to product consumption or usage

more SA

when in postive mood=maintain good mood

More CA and SD w

when messages disagree with prior beliefs, when argument in message is weak

complaining is more likely

when motivation, ability, and opportunity is high

endowment effect

when ownership increases the value of an item

attraction effect

when the addition of an inferior brand to a consideration set increases the attractiveness of the dominant brand; disappears if the options are undesirable

more support arguments and fewer counterarguments

when they are involved with TV program in which commercial appears; more persusasive

bias happens

when we overapply a heuristic

postdecision evaluations

whether decision was correct and whether to purchase again

valence

whether information about something is good (positive valence) or bad (negative valence)

loss aversion

• People tend to be more sensitive to losses than to gains o Wants to charge different prices in the summar compared to winter o Discount=something you get=gain frame .25 cent gain=more likely to go along with decision o More aversive to the .25 if associated with loss

marketing managers

• Study consumer behavior provides critical information to managers for developing marketing strategies and tactics • Marketing=activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large • Understand what consumers and clients value o Develop, communicate, and deliver appropriate goods and services

how we percieve

• What we see depends on what we expect to see, what we hear depends on what we expect to hear... • We expect to see context and depth (brain autocorrects) • We expect to what fits with our stereotypes (easier to fit these stereotypes) • Perceptual expectations can lead to illusions - don't believe everything you see/hear • Illusions can be used to great effect in packaging