Consumer Behavior Exam 1

Marketing Applications of Repetition

- Repetition increases learning - More exposures = increased brand awareness - When exposure decreases, extinction occurs - However, too MUCH exposure leads to advertising wear out ex: izod crocodile on clothes

Ch 1 Summary

1. Consumer behavior is a process 2. Marketers have to understand the wants and needs of different consumer segments 3. Our choices as consumers relate in powerful ways to the rest of our lives 4. Our motivations to consume are complex and varied 5. Technology and culture create a new "always on" consumer 6. Many different types of specialists study consumer behavior 7. There are differing perspectives regarding how and what we should understand about consumer behavior

Ch 3 Summary

1. The design of a product affects our perception of it 2. Product and messages may appeal to our senses 3. Perception is a three-stage process that translates raw stimuli into meaning 4. Subliminal advertising is controversial 5. We interpret stimuli using learned patterns 6. Marketers use symbols to create meaning

80/20 Rule

A marketing rule of thumb that 20 percent of purchasers account for 80 percent of a product's sales.

Relationship marketing

A strategy that focuses on keeping and improving relationships with current customers Focuses on customer loyalty and long-term customer engagement rather than shorter-term goals like customer acquisition and individual sales

Perception

A three stage process that translates raw stimuli into meaning Stages: exposure, attention, interpretation

We learn about products by observing others' behaviors

Attention: the consumer focuses on a model of behavior Retention: the consumer retains this behavior in memory Production processes: the consumer has the ability to perform the behavior Motivation: a situation arises wherein the behavior is useful to the consumer Observational learning: the consumer acquires and performs the behavior earlier demonstrated by a model

Stimulus generalization

Classical conditioning tendency for stimuli similar to a conditioned stimulus to evoke similar, unconditioned responses try to capitalize on consumer's positive associations with an existing brand or company name family branding: enables products to capitalize on the reputation of a company name product line extensions: by adding related products to an established brand licensing: allows companies to rent well-known names look-alike packaging: . Distinctive packaging designs create strong associations with a particular brand. Companies that make generic or private-level brands and want to communicate a quality image often exploit this linkage when they put their products in similar packages to those of popular brand

Stimulus discrimination

Classical conditioning the tendency to stop making a generalized response to a stimulus that is similar to the original conditioned stimulus because the similar stimulus is never paired with the unconditioned stimulus Response doesn't followed for similar stimulus

Technology and culture

Create a new "always on" consumer

Popular Culture

Culture found in a large, heterogeneous society that shares certain habits despite differences in other personal characteristics. Music, movies, sports, books, celebrities, entertainment Marketers influence preferences for movies and music heroes, fashions, food, and decorating choices

employee performance

Gamification employee training evaluation and compensation systems

store and brand loyalty

Gamification foursquare gives people virtual badges when they check in at a local cafe or restaurant. Some of them check in as often as they can to compete for the honor of being named "mayor" of the location

endowed progress effect

Gamification people are more motivated to attain a goal when they are provided with the illusion of a "head start" even though the actual effort required to reach the goal does not change

social marketing

Gamification the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of society

Pre-purchase issues

How are consumer attitudes toward products formed and/or changed? What cues to consumers use to infer which products are superior to others?

Purchase issues

How do situational factors, such as time pressure or store displays, affect the consumer purchase decision?

The golden triangle

How our eyes view websites People usually spend most of their time on a website in the golden triangle

positive reinforcement

Increasing behaviors by presenting positive stimuli, such as food. A positive reinforcer is any stimulus that, when presented after a response, strengthens the response. consumers learn to perform responses that produce positive outcomes Strengthens connections

Negative reinforcement

Increasing behaviors by stopping or reducing negative stimuli, such as shock. A negative reinforcer is any stimulus that, when removed after a response, strengthens the response. (Note: negative reinforcement is not punishment.) Consumer learns to perform responses that will allow him/her to avoid negative outcome strengthens connections

Factors leading to adaptation

Intensity: less intense stimuli have less sensory impact Duration: stimuli that require lengthy exposure in order to be processed habituate because they require a longer attention span Discrimination: simple stimuli habituate because they do not require attention to detail Exposure: frequently encountered stimuli habituate as the rate of exposure increases Relevance: stimuli that are irrelevant or unimportant habituate because they fail to attract attention

We interpret the stimuli to which we do pay attention according to ____________.

Learned patterns and expectations

Incidental Learning

Learning without trying to learn, and often without awareness that learning is occurring.

Scent

Like color, odor can also stir up emotions and memory scent marketing is a form of marketing that we may see in lingerie, detergents, and more A consistent scent could ultimately register with consumers as a brand's sensory signature

Need vs. want

Need is something that a person can not live without Want is just something that a person would like but not something that they really need

Punishment

Negative effect weakens responses that are followed by negative outcome Consumer learns not to perform response leading to punishment weakens connections

How do marketers get attention?

Personal Selection (experience and perceptual filters) and Stimulus Selection

Extinction

Removal of positive event weakens response preceding occurrence consumer learns that responses no longer produce positive outcome weakens connection

Gamification

Selective use of game design and game mechanics to drive employee engagement in non-gaming business scenarios.

Digital Native

Someone who grew up with computers, video games, and the Internet from the time she or he was born and is comfortable using these technologies

Audio watermarking

Sound A technique where composers and producers weave a distinctive sound/motif into a piece of music that sticks in people's minds over time Encourages the retention of a message--acts as an earworm that we compulsively hum

Phenomes

Sound The basic sounds that make up any language Hard consanants (K or P) are more likely to be recognized

The field of semiotics helps us to understand how marketers use ________________

Symbols to create meaning

Differential threshold

The ability of a sensory system to detect changes in or differences between two stimuli

Observational learning

The consumer's

Stage 2: Attention

The extent to which processing activity is devoted to a particular stimulus Marketers need to break through the clutter The allocation of processing activity can vary depending on the characteristics of the stimulus and the recipient. Sensory overload means consumers are exposed to far more information than they can process. Much of this comes from commercial sources. We are exposed to thousands of advertising messages each day in addition to the other types of stimuli we sense

Halo effect

The halo effect is a term for a consumer's favoritism toward a line of products due to positive experiences with other products by this maker. The halo effect is correlated to brand strength and brand loyalty and contributes to brand equity.

Stage 3: Interpretation

The meaning we assign to sensory stimuli, which is based on a schema In a process called priming, certain properties of a stimulus evoke a schema. This leads us to compare the stimulus to other similar ones

Just Noticeable Difference (JND)

The minimum difference we can detect between two stimuli Sometimes a marketer may want to ensure that consumers notice a change, as when a retailer offers merchandise at a discount. In other situations, the marketer may want to downplay the fact that it has made a change, such as when a store raises a price or a manufacturer reduces the size of a package.

Role Theory

The perspective that much of consumer behavior resembles actions in a play Consumers are "actors" on the marketplace stage: much of the consumer's behavior is similar to actions in a play In life we all have many roles and our consumption practice may be altered by our role We may be students. teachers, brothers, sisters, mothers, fathers, team member, team leader, etc.

Love

The product elicits emotional bonds of warmth, passion, or other strong emotion

Interdependence

The product is a part of the user's daily routine I take my One a Day vitamin every day. It's part of my routine

Weber's Law

The stronger the initial stimulus, the greater a change must be for us to notice it. Ernst Weber found that the amount of change required for the perceiver to notice a change systematically relates to the intensity of the original stimulus.

What is consumer behavior?

The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires Marketers have to understand the wants and needs of different consumer segments

Gestalt

The whole is greater than the sum of its parts One factor that determines how we will interpret a stimulus is the relationship we assume it has with other events, sensations, or images in memory Our brains tend to relate incoming sensations to others already in memory based on some fundamental organizational principles

Asynchronous interactions

Those that don't require all participants to respond immediately, like when you text a friend and get an answer the next day

Synchronous interactions

Those that occur in real time, like when you text back and forth with a friend

Endowment effect

Touch Once we own something, or have a feeling of ownership, we place more value on an item

Haptic

Touch We are more sure about what we perceive when we can touch it We have a tendency to want to touch products

Kansei Engineering

Touch a Japanese philosophy that translates customers' feelings into design elements It aims to please customers with the product's aesthetical qualities as well as its performance

Our motivations to consume are complex and varied

We buy products for what they mean

Postpurchase issues

What determines whether a consumer will be satisfied with a product and whether he/she will buy it again? Does this person tell others about his/her experiences with the product and influence their purchase decisions?

Schema

a concept or framework that organizes and interprets information Set of beliefs

Context effects

a given stimulus may trigger different perceptions because of the immediate context influences that encourage us to buy (environmental factors)

Classical conditioning

a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own Unconditioned Stimulus: evokes emotional response Unconditioned Response: Emotion elicited by UCS Neutral Stimulus: Brand (package, colors, logo, product...) Pairing: what we associate Conditioned Stimulus: NS is now symbol of something else Conditioned Response: emotion evoked by CS. Thus, we buy & feel good

Perceptual filters

based on our past experiences influence what we decide to process Perceptual vigilance: consumers are more likely to be aware of stimuli that relate to their current needs (A consumer who rarely notices car ads will become very much aware of them when she or he is in the market for a new car) Perceptual defense: people see what they want to see, and don't see what they don't want to see (If a stimulus is threatening to us in some way, we may not process it, or we may distort its meaning so that it's more acceptable.) Adaptation: the degree to which consumers continue to notice a stimulus over time. Process occurs when consumers no longer pay attention to a stimulus because it's so familiar. (A consumer can "habituate" and require increasingly stronger"doses" of a stimulus to notice it)

Sensory marketing

companies think carefully about the impact of sensations on our product experiences marketers rely heavily on visual elements in advertising, store design, and packaging. Many of our reactions to color come from learned associations Products and commercial messages often appeal to our senses, but because of the profusion of these messages, we don't notice most of them

C2C e-commerce

consumer-to-consumer activity through the Internet

Similarity

consumers group together objects that share similar physical characteristics

Heavy users

consumers who purchase a product or service much more frequently than others brand loyal, most faithful customers

Stimulus selection factors

contrast, size, color, position, novelty Marketers need to understand these factors so they can create messages and packages that will have a better chance of cutting through the clutter. Several characteristics can aid in enhancing the chances of a stimulus for being noticed

Semiotic relationships

correspondence between signs and symbols and their roles in how we assign meanings Object: the product that is the focus of the message Sign: the sensory image that represents the intended meanings of the object Interpretant: the meaning we derive from the sign Icon: a sign that resembles the product in some way (the Ford Mustang has a galloping horse on the hood) Index: a sign that connects the product because they share some property (the pine tree on some of Procter & Gamble's Spic and Span cleanser products conveys the shared property of fresh scent) Symbol: a sign that relates to a product by either conventional or agreed-upon associations (the lion in Dreyfus Fund ads provides the conventional association with fearlessness and strength that it carries [or hopes to carry] over to the company's approach to investments)

internal learning processes

ex. Dyson commercials. Car Pros Sells for less. cognitive learning theory

Cognitive theories

focus on consumers as problem solvers who learn when they observe relationships

Behavioral learning theories

focus on stimulus-response connections

Conditioning results in ____________

learning

Examples of brand positioning

lifestyle, price leadership, attributes, product class, competitors, occasions, users, quality CH 3 slide 28

frequency marketing

marketing initiative that rewards frequent purchases with cash, rebates, merchandise, or other premiums

Stage 1: Exposure

occurs when a stimulus comes within the range of someone's sensory receptors key concepts: Sensory threshold Psychophysics Absolute threshold Differential threshold JND Weber's Law

Figure-ground

one part of the stimulus will dominate (the figure) while the other parts recede into the background (ground)

B2C e-commerce

online exchanges between companies and individual consumers Business to consumer

Closure

people perceive an incomplete picture as complete

Perceptual Process

sensory stimuli --> sensory receptors --> exposure --> attention --> interpretation We receive external stimuli through our five senses receptors: eyes, ears, mouth, nose, skin

Demographics

statistical data relating to the population and particular groups within it. age, gender, family structure, social class/income, race/ethnicity, geography, lifestyles

The design of a product is often a key driver of it's _____ or _____

successes; failures

subliminal advertising

supposedly hidden messages in marketers' communications a controversial, but largely perceived as ineffective way to talk to consumers Subliminal is NOT detectable to the human eye

Market Segmentation strategies

targeting a brand only to specific groups of consumers who share well-defined and relevant characteristics

Brand equity

the added value a brand name gives to a product beyond the functional benefits provided classical conditioning principle--this is what you want to establish

Extinction

the diminishing of a conditioned response; occurs in classical conditioning when an unconditioned stimulus (US) does not follow a conditioned stimulus (CS); occurs in operant conditioning when a response is no longer reinforced.

Instrumental/operant conditioning

the individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes

Absolute threshold

the minimum amount of stimulation a person can detect on a given sensory channel Means that stimulation used by marketers must be sufficient to register Ex: a highway billboard might have the most entertaining copy ever written, but this genius is wasted if the print is too small for passing motorists to see it.

Stimulus Organization

the physical arrangement of the stimulus objects

Sensory threshold

the point at which a stimulus is strong enough to make a conscious impact on a person's awareness Ex: pepsi logo changing over the years--if the difference didn't pass our sensory threshold, we wouldn't notice the logo had changed

Sensation

the process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment vision, scent, sound, touch, taste

Sound symbolism

the process by which the way a word sounds influences our assumptions about what it describes and attributes such as size

Learning

the process of acquiring new and relatively enduring information or behaviors

Consumer socialization

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

Self-concept attachment

the product helps to establish the users identity "I am a Harley rider"

Nostalgic attachment

the product serves as a link with a past self Slinky

Experience

the result of acquiring and processing stimulation over time Consumers will pay more attention if they have more experience

Psychophysics

the study of relationships between the physical characteristics of stimuli, such as their intensity, and our psychological experience of them How people integrate the physical environment into their personal worlds

Hedonic consumption

the use of products/services for the sake of intrinsic enjoyment how consumers interact with the emotional aspects of products

Embeds

tiny figures inserted into magazine advertising by using high-speed photography or airbrushing; exert strong but unconscious influences on readers

Learned associations with brands generalize ________________

to other products

Database marketing

tracking and analyzing the purchasing patterns of specific customers in a computer database and then targeting advertising to their needs Emphasizes the use of statistical techniques to develop models of customer behavior, which are then used to select customers for communications.

Color forecasts

vision colors that manufacturers and retailers buy so they can be sure they stock up on the next hot hue Ex: pantone identified marsala as the color of the year for 2015

Trade dress

vision the image and overall appearance of a product some color combinations come to be strongly associated with a corporation ex: blue box/bag from tiffany's

social default and modeling

when we are preoccupied with other demands, we are likely to mimic others' behaviors the process of observing and imitating a specific behavior the consumer attention must be directed to the appropriate model the consumer must remember what the model says/does the consumer must convert this information into actions the consumer must be motivated to perform these actions

consumption communities

where members share opinions and recommendations about anything like groups buy like things

Marketing application of colors

yellow-optimistic and youthful, used to grab attention red-energy; clearance sales blue-trust and security; banks green-wealth; relaxation in stores orange-aggressive; call to action, subscribe, buy or sell black-powerful and sleek; luxury products purple-soothing; beauty or anti-aging products