Consumer Behavior Test 1

Overprocessing

A frame of mind / bias - Accessibility: making it the most available to process will lead to it being rehearsed and have the most impact

Incorrect processing

A frame of mind / bias - Inferences: common bias includes inferring causation from correlation -Biased choice - avg. vs adding

Underprocessing

A frame of mind / bias - framing - small changes in context that change the way people process the info -gains vs losses, psychological distance

Habituation

A frame of mind / bias where people quit processing and do what they are used to doing. -Stickiness to anchor, status quo bias

Encoding specificity

A memory retrieval rule - how info is taught reflects how it will be used to permit retrieval -Months of the year in order -Nutritional labels give serving info

Part List Cuing

A memory retrieval rule referring to accessibility and interference -#2/#3 brands cue #1 brand, inhibits competition and benefits #1 -#1 / #2 brands cue #3: Hurtful, increases competition -Retrieving one node helps to jog memory of nearby, related nodes -Cuing big brand = okay, memorable anyway -Cuing small brand = mistake - harder to remember other small brands -Verizon attacks AT&T, AT&T retaliates with info, has been in flux ever since

Pop retrieval cues

A memory retrieval rule that refers to cues that match encoding cues -Package matching fold out ad -Mikey + Life Cereal: Mikey won't eat anything other than "life", put his face n cereal box, cue moved to point of purchase

Memorability

A principle of attention and memory -Cuing the familiar and adding unexpected -Mean Joe Greene, Tiger Woods w/ Nike Swoosh smile, Nike Mona Lisa (bold colors, contrast, familiar yet unexpected)

Familiarity with a twist

A principle of attention/memory -Familiarity: rapid processing -Twist: aids attention and memory

Deviations from Expectation

A principle of involuntary attention. Capture involuntary attention by catching people off-guard. -Surprise: Dove campaign (deviate from external norms - "real women" to "real men" during SB) -Novelty: Cloth ad (consistent w/ brand) -Boldness/risk: Candie's ad (failure? no association. Focus on person, not brand.)

Figure ground

A principle of involuntary attention. What do you pay attention to from the ad? -Brand must always be the figure - focus shouldn't be on model, but on brand/product -Ex. French Billboard (about company honesty / keeping promises - used to convince people of billboard ads = good idea) -Go Daddy - Exception to the rule?

Disjunctive Rule

A rule for changing attitudes - similar to lexicographic, but set a high cut off on any attribute. pick any alternative that satisfies that high cut off -Applicable in portfolio choices + variety seeking -Tea: Escape to your own island -Football: get good person to fill a role to have a good team, don't need every player to be best -M&M's: high attribute of "different" - not like other candy bars, high on one one attribute but still a success

Few details contribute to memory

Details are not relevant for memorizing things -Details of a penny vs reading sentence with words out of order

Informational Scale Items

"I learned ____" "_____ reminded me of ____" "____ product is no different than ____" "I feel more confidence in ____"

Transformational Scale Items

"I want to have the experience in ____ commercial" "____ held my attention" "idk what it is but I like _____ product"

Correlation vs Causation

"Successful companies like Starbucks expand, so expansion is necessary for success" - not necessarily -Sales go up as ads go up: correlation NOT causation -Many factors could've led to the upward trend - competition dropped, more sales = more $ for ads, market changes

9 - 15

% of consumers that must be mistaken about claim for FTC to consider it misleading

Affect

The best defense strategy for #1 brand, even against info attack

Impacting combination rules for attitudes

Third strategy to change attitudes -Compensatory rule: combine across all attributes -Lexicographic: make decisions on most important attribute -Conjunctive: -Elimination by aspects -Disjunctive

Framing Lives

Gain frame: save 200 lives Loss frame: 400 people will die Gain frame is more popular - more people will choose that option since there is certainty that is positive

Certain

Gain frames are the better choice when outcomes are fairly _______

Role of ad

Setting expectations and Transforming brand

Representative heuristic

Similar to category-based effect - if a perfume is representative of French = romance/class

Anchoring + Adjustment Heuristic

Similar to large influence of expectations, expectations drive judgments and individuals tend not to adjust enough from initial anchor / expectation -ex. kindie teacher tells you you're smart, spend whole life believing it and need a lot of evidence to belief otherwise

Availability Heuristic

Similar to understanding of part-list cuing - what is cued will be better recalled and influence judgments -Ex. news cues death by road rage, we will overestimate those and underestimate death by DUI estimating the likelihood of events based on their availability in memory

Multiattribute model of information

Single largest tool used by brand and product managers -Each attribute has 2 components: belief on the attribute and importance/evaluation of the attribute -Attributes summed to find Attitude -Belief - importance matrix

Other roads to judgment

-Autobiographical emotions -Social Support -Misattributions -Habit

Accountability for misperception

-Consumer lobbies -Public policy by gov agencies (bands, taxes, FDA monitoring, recommendations) -Self regulation by companies -Individual consumers

Countering attitudes without info

-Emotions: tempted by chocolate cake - fight with disgust, not info -Social support: drinking / drugs = less widespread than you think - popularity is more effective than risk info. also try well-liked celebrities that speak their language and have respect (expect Gronk + Tide Pods) -Misattributions: to try nicotine patches, smokers must attribute all pleasure in smoking to nicotine -Behavioral Interventions: habituated behavior is best changed by interventions, not info

Inertia Strategies

-Familiarity through REPETITION -Consistency across packaging + advertising -Convenience through distribution and shelf placement

Principles of attention/memory

-Familiarity with a twist -Memorability

Getting inside the mind

-Gaining attention: strategies to gain attention to the stimulus, strategies to focus attention within stimulus -Making it stick: strategies to get data into mind (familiar with a twist), strategies to pull data out of memory (retrieval)

Branding Phenomenon

-Good: how people choose, making brands "sticky", emotions in branding, choice architecture, launching new brands -Bad: misleading and deceptive advertising, seedy influence tactics -Ugly: Managing product failure and market rumors

Variety Seeking Strategies

-Maximize differentiation - newness, fun, form, size, flavor, assortment -Maximize difference through form and flavor (M&M's, Sharpies) -Maximize fun through games and activities (M&M Imposter, Create a Lay's Flavor) -Encourage indulgence (Subway = healthy) -New Look (Smirnoff Twisted) -Maximize variety through context / usage (Nabisco's snacks for each day of the week)

Memory Retrieval Rules

-Part-list cuing -Pop retrieval cues that match encoding cues -Place info where it will be used -Encoding specificity

Vivid salient

-Pepsi ad was _____ not _______ (Red color + Cindy Crawford captures attention, but red cued coke) -Calvin Klein ad was ____ when it came to sex, but _____ because it was black and white and blurry

Conjunctive uses

-Risky decisions (houses) -Joint decisions (kid and parents pick snacks)

Encoding Rules

-Singularity -Consistency -Distinctiveness -Repetition -Proximity -Elaboration -Familiarity with a twist -Concreteness -Simplicity -Music

Ads set expectations

-consumers compare expectations of product with reality -where should marketing set expectations? -observational data: expectations set high -BMW: ultimate driving machine -perceived performance = actual + expectation -performance assimilated in contrast to expectations - make expectations high to change the experience performance

Ads + Perceptions

1) Ads set expectations 2) Ads transform experience

Managing information

1) Establish brand - attribute link (Job + salary, SWA + cheap) 2) Increase attribute importance - mkt flux can hype importance of some attributes (Location of job, cost of flights) 3) Influence decision rule 4) Choose or defer decision 5) Evaluate post-purchase behavior

3 routes to attitudes

1) Impact beliefs (comm. beliefs, add beliefs, change range of beliefs) 2) Impact importance weights (Via advertising, decoys, or competition) 3) Impact combination rules for combining beliefs

Misbelief sources

1) own misleading advertising (egg board) 2) competitive action (Oreck v Dyson) 3) market rumors (taco bell horse meat)

Complex Decision Steps

1) problem recognition: recognize need to satisfy 2) search for info: generally limited 3) evaluation: combine info to make choice - promote brand, attribute links, attribute importance weights, promote rules to influence choice 4) Decision 5) Post-purchase eval

3 types of products and services

1) search 2) experience 3) credence

Memory

2 characteristics: 1) Meaning based 2) Very few details contribute to it

Flux

A change in circumstances, personal or market - creates uncertainty and anxiety -When you make info available to consumers -Forces complex decision making process -Individual shifts: aging america (bone loss, wrinkles, hair loss) -Market shifts: economic shifts (Obamacare), missteps by competition (perrier) -Pro-active shifts: aggressive ads (Pepsi challenge), product innovations that create opportunities and challege #1 -When things are in flux, people seek info -When market is in flux, brands respond with info, which sends it more into flux

Loyalty

A form of habit buying - habit and attitude, consistent repurchase of loyalty brand as doing otherwise is risky

Compensatory Rule

A rule for changing attitudes that combines across all attributes -high attributes compensate for low attributes -Pjs = locations > quality -Multiple attributes considered -combine, integrate across attributes for more overall judgment -Redbull: energy > taste -Singapore Airlines: best overall

Elimination by Aspects Rule

A rule for changing attitudes that is similar to conjunctive. Reject the product is it does not pass cut-off on attribute, which attribute you rank first makes a difference -Illustrates problems with piecemeal data inference processes = each piece is true, conclusion is false -Discover: if your card doesn't do ____, cut it up -Order of processing attributes is critical

Lexicographic semi-order rule

A rule for changing attitudes which treats close values as equal (attributes processed as discrete, not continuous) and move to next attributes -Egg price example - organic, free range, normal - Free range < organic, organic < regular, but free range < regular (2x the protein for 2x the cost)

Conjunctive Rule

A rule for helping change attitudes - set a minimum standard on each important attribute, accept any alternatives that meet this criteria -Kudos: not the best tasting, not most nutritious, but "best nutrition bar you've ever tasted" -Underutilized in comm -Useful: risky choice, joint-decision-making

Lexicographic Rule

A rule for impacting attitudes by making decision based on most important attribute -Most heavily used in advertising -Pearl Drops: White teeth = most important -Pork: The other white meat = whiter meat is better for your -Allows people to better process glut of options in a single attribute, reduces complexity

Heuristic

A simple thinking strategy that often allows us to make judgements and solve problems efficiently

Adding beliefs

A strategy for communicating beliefs to change attitudes - extending the matrix -Add an attribute, but rethink and add value (safety of people outside the car)

Adding + Averaging

A strategy that refers to adding something to an ad or campaign to change the perception / balance out a potentially negative attribute -Adding broccoli to the picture of quiche makes it look healthier, averaging out the unhealthiness of the quiche -Even though it would actually add cals, it seems like it would make the quiche less unhealthy

Autobiographical emotions

A type of judgment forming where ambiguity allows self-identification -serve kids unhealthy food = emotion, not info -DeBeers: Outlines of people in proposal - spend salary on diamond ring, not down payment, project self into image, consider specific emotions later

Involuntary attention

A type of motivation where consumer is attracted to the ad to pay attention -Vivid physical characteristics - color, size, proximity -Emotive + memorable color (AirFrance and Mardi Extra) -Size and proximity -Vivid vs Salient - attention getting w/ context - may have both in one type of ad -Deviations from expectations (surprise, novelty, boldness/risk) -Figure ground: what do you pay attention to?

Voluntary Attention

A type of motivation where consumer is internally motivated to pay attention -Making complex decisions (medicine ads with lots of text)

Internal accessibility

A variable of info search - prior knowledge continues

External accessibility

A variable of information search - google position, keyword search extensively researched and guides that keywords companies purchase -Audi buys "BMW" not mercedes

Decoys and Importance weights

A way to change importance weights to change attitudes -Line extensions to support focal brand -Subtraction, attraction and compromise: subtraction will take from your current offers, attraction will take from competitors current offers, attraction depends

Advertising and importance weights

A way to change the importance weights, which will change attitude, though ads -Ads impact belief-importance relationship, not belief-brand relationship -Volvo: safety for second car for young, suburban families -Listerine: Happy birthday, you've got gingivitis -Zoloft: makes depression an issue so they can sell solution to it

Post-internet info

Actually narrowed search -consumers usually consult one source, few brands, few attributes -search is more direct / easier to find = less consulting time spent: keywords, detailed searches -Narrow - only 2 variables: external and internal accessibility

Attraction Effect

Adding close competition, decoy but close to you, pushes people to choose you b/c slightly better -more good options will take -Maple St vs Oak: More coffee shops on Maple = Maple is more popular. The best coffee shop on Maple wins most

Competition and importance weights

Adding extra options on a dimension increases relative importance of that dimension -Subcategory and within that, the dominant brand wins -1 italian restaurant and 1 mexican restaurant -2 italian + 1 mexican -2 mexican + 1 italian

Hypothesis, salient

Ads should provide strong _____, while brands should provide ____ cues to confirm these

importance

Advertising impacts belief-_______ relationship, not belief-brand relationship

Transformation Advertising

Advertising that alters and frames our perception of brands -changes product and services experiences into larger than life events -Marlboro: smoking is macho, outdoorsy, healthy lifestyle -DeBeers, Hallmark

Exponential marketing

Also known as 888 rule: Mind + heart + spirit -Like experiential marketing, which transforms experience -goes beyond functional attributes to engage mind to evoke heart and spirit -Coke: mind (taste), heart (happiness), spirit (sense of community / friendships) -Apple: mind (easy to use), heart (aesthetics), spirit (cult following)

Experiential Marketing

Also known as embodied cognition. Utilizes events, store design, and other means to engage customers in a personal and involving way -Stovetop Stuffing -Emeril - flavored toothpaste -Mundane - extraordinary

Affect referral

An appeal which attracts consumers emotionally, not informationally.

Consistency

An encoding rule that refers to acting the same across marketing actions -packaging and concept, advertising, promotion, pricing, etc. -Walgreen's: "@ corner of happy and healthy" + loyalty program with fitness apps -McDonald's: "pay with love" free burger if you call mom and say you love her -Jack Daniel's: sinatra selection - sinatra liked JD's, promotion in airports -Old Spice: message has been the same since 1950's -Apple: the same across products

Repetition

An encoding rule that refers to do something many times to form the association -Blue's Clues: Repeating same episode over and over again -Negating a rumor: just drills it into people's heads

Proximity

An encoding rule that refers to how physical interaction between and brand and its use helps form association

Music

An encoding rule that refers to how sounds/jingles can improve association -Chiquita banana: 1940's commercial appeared on radio stations hundreds of times a day -Video only played in movie theaters -Easier to learn info via music

Singularity

An encoding rule where there is 1 brand and 1 association -Levi's: original link = worker's jeans, new association = women's jeans, cartoons and impressions art win awards but sales impact is negative overall -Association weakened, broke this concept

Familiarity with a twist

An encoding rule which forms association through changing a familiar concept slightly -David statue but fat

Simplicity of words

An encoding rule which refers to how phrases catch on and become a part of the every day vernacular -"Got Milk" -Yes we can -Stuck on bandaid

Distinctiveness

An encoding rule which refers to the salience in context and how the brand is distinguishable from competition -Pepsi --> blue bc red = Coke -Milk mustache campaign -Smirnoff copying Absolut

Elaboration

An encoding rule which refers to the self-generation of the brand -Consumer has to "fill in the blank" - leads to memory and linking and creative thought -Kit Kat: "give me a break, break me off a piece of that" song, self generated when they just did instrumental version later. -Kellogg: sales went up after "g" went out in sign and people corrected it in their minds, thought about it more subconsciously -Lego: stirs the imagination through self-generation

Concreteness

An encoding strategy that revolves around making the association palpable -anti-smoking = kid smoking with adult head, solidifies 2nd hand smoking is as bad as actually smoking

Habit

An influence on judgment - routines / actions leads to more actions -Listen to loud music = hurts ears = need louder music

Misattributions

An influence on judgment making - making choices based on some factors, not all -Accepting to go to Tulane in spring when it's nice and sunny and northeast is cold and snowy bc happiness - happiness comes from weather, not TU -Beer; Happiness comes from social benefit, not taste

Embodied cognition

Another phrase for experiential marketing -The mutual influence of bodily sensations on cognitive preferences and social judgments

Brand Logos

Art used by brands to invoke memory can help with memorability -Toronto police force: too much detail, looks like any other crest -Nike Swoosh: expensive to link to nike, but successful -Mercedes 3 pt star: laden with meaning -Target: Dropped words from logo, now just circles

Brand confusion

Associations can confuse different brands or create confusion within brand -LA Superdome vs HP Superdome -Absolut vs Smirnoff (deliberate on Smirnoff's part, wants to create part-list cuing, but the brand confusion ends up helping leading brand) -Avis + 7-Up = distinguished from brand leader - 7-up = anti-cola

underlying basis

Attitudes can only be altered by addressing _____ of attitide

Branding

Based on understanding the consumer (end consumer, organizational buyers, regulators of business) is the key to marketing strategy (advertising, managing, WOM, retailing, which brand extensions to bring to market) and to overall financial success

Company-Centric

Behavior that focuses on the company, rather than the brand or product -Ford: commercial about all the brands it owns + globalization of Ford + all ages and types of people drive Ford = bad, people driving a Jaguar don't want to be in the same class as people driving a Mazda. Leads to 2007 bailout -Kodak: focus on instamatic film - did not advance with digital era and digital cameras. Strong identity associated with film, not digital. Pride in company history = not growing and advancing

Consumer-centric

Behavior that focuses on the needs/wants of the consumer -Toyota: creates Lexus, a premium brand, to be high-end/luxurious and attract a high-end client base -P&G: Makes Bold, Cheer, Ivory, and Tide but focus is on brand and consumer, not company

Brand names

Being simple and meaningful helps names of brands stick. -Familiar words in new context: simple to learn, yet novel (Blockbuster) -Relevant Attributes: meaningful as names (Airwalk shoe) -Concrete examples: typify category (staples) -Avoid words with multiple meanings ("standard" = no clear meaning) -Distinctiveness

Reversing causality

Believing that the cause becomes the effect - smart shoppers shop at k mart

Inversely

Brand rule _____ proportional to brand scope -create focused brand - singular, consistent, differentiated

Confirm

Brand should _____ ad, rather than "up" expectations

Major themes of marketing

Branding, consumer psychology, behavioral economics, consumer decision making

Information

Brands that are not the industry leader should use _____ approach

Emotional

Brands that are the industry leader should use ____ approach

Piecemeal Data

Can be used to mislead / cause miscomprehension - parts of data are true, whole idea is inferred

Experience Products (Services)

Can only be evaluated after having been experiences (i.e. haircut, going out to dinner, etc.) -More differentiated -Less price sensitive -Harder to change opinion since it is after use

Causality

Cannot be reversed -Success leads to expansion -Expansion does not lead to success

Brand Extensions

Capturing a new segment of the market by expanding the brand offering. Can create confusion with the parent brand and have implications for consumer welfare -If you're really focused on consumer behavior and you think they want something / use your product in a different way, create a distinct product and brand -Nyquil: Increased use of Nyquil as sleep aid after making ZZZZQuil bc perception of Nyquil as a sleep aid is increased

Belief Statements

Change range on belief statements to help communicate beliefs: -Negative calorie beverage, increases calorie burn (Enviga) - misleading, caffeine already does that

Hybrid decision processes

Coke Company Brands - Loyalty, variety seeking -Fanta, Sprite, Coke, Powerade, Minute Maid, Vanilla Coke, Dasani -Product = variety seeking, coca cola = brand loyalty -How to market cherry coke? 2 options: brand extension (loyalty 1st, variety 2nd) or new brand (variety 1st, loyalty 2nd)

Transferring Beliefs

Communicate beliefs to change attitude by using info about other product categories (Listerine + floss), parent brands (Gatorade + propel), countries of origin (France = romance), comparative claims (Lean Cuisine vs Healthy choice = lower fat), etc. to evoke ideas -Can be misleading

Habit buying

Consistent repurchase of brand over time -need leads directly to choice without search and evaluation

Limits to Variety Seeking

Consumer consideration sets for brands + variety are relatively small -More options = more overwhelming = less likely to buy -Try to reduce processing overload by sorting and stocking by sub-category

The Toyota Strategy

Consumer-focused - distinct brands -Very specific position as the luxury car at the bottom end of the luxury car spectrum, separate from cheaper Toyota brand -Tata Motors: bought Jag and Land Rover to keep separate from Tata Nano brand. Introduces Nano and stock soars, does well

Inertia

Consumers don't care. Low involvement, high habit. A form of habit buying when consumers aren't invested, motivation to save physical / cognitive effort. -See few diffs between brands

Part list cuing

Create list with leader, other small brands get knocked out

Maintaining Singularity

Create other brands to avoid muddying up the associations with main brand (i.e. Levis, Dockers, Slates)

Expectations

Customer satisfaction is heavily based on _____ marketers put in place through advertisements

Perceived damage

DEFLATION is a strategy for misleading advertisements when the product problem is very localized or image (not product) faces short term/localized assault -Subway Mouse: silent inquiry, little PR -Walmart: lame apology -Absolut: silence -Deflect, don't deny (McDonald's worm meat) -Ethics should be, but aren't, factored in (BP oil spill = no apology, accept fine)

Inertia

Decision making that is low involvement, high habit -TP dish soap

Loyalty

Decision making with high involvement, high habit -Phone, medication

Complex

Decision making with high involvement, low habit -House, car

Variety Seeking

Decision making with low involvement and low habit -Chips, snacks

Involvement habituation

Decision processes are based on two main pillars

Positive, negative

Decisions with ______ outcomes look better in whatever form maximizes them (% vs probability), decisions with ______ outcomes look better in whatever form minimizes them -70% of men grow hair vs 7/10 -.01% experience weight gain vs 1/100

Miscomprehension

Decoding failures - claim is true, but every day inference processes results in misperceptions -Some groups may be particularly vulnerable to incorrect references FTC: rules that is ad is misleading if as few as 9% of consumers are mistaken about claim, but 15% is norm

Denial

Default strategy when dealing with customer misbelief

Emotion

Emotion or info is more effective for changing attitude?

Assimilation

Equals ANCHORING to priors created by marketing communication

Attitude

Equals sum of belief x importance

Importance weights

Evaluations of attributes - how much value each one has. 1) Via advertising -Volvo: safety for second car for young, suburban families -Listerine: Happy birthday, you've got gingivitis -Zoloft: makes depression an issue so they can sell solution to it 2) via decoys -Line extensions to support focal brand 3) via competition

Low Involvement and advertising

Exposure: repetition Passive Learning: need to make more active, lack of counter argument Choice in Context: recognition, not recall Outcome: Rather than advertising, being irrelevant under low involvement, it is actually very important. More advertising, more in-store ads = more effective. Active, not passive 1) see on TV (passive) 2) see print ad (reminder) 3) recognize brand in-store

False (low involvement and high habituation)

Habituation is only for cheap items - t/f

Search products (services)

Have attributes customers can readily evaluate before they purchase -A hotel room price, an airline schedule, television reception, and the quality of a home entertainment system -Well-informed buyers are aware of the substitutes that exist for these types of products - more price sensitive than other buyers, unless there exists some brand reputation or customer loyalty.

Loyalty Decision Making

High involvement, high habituation -Do NOT use info - rely on feeling. People with info = flux = need more info = change decision -Maintain status quo: maintain loyalty

Perception

How we see, remember + interpret -Experience does not equal reality -experiences can be transformed by framing

Risky decisions

If behavior leads to a relatively certain outcome, then _____ messages work well. If behavior leads to a more uncertain outcome, then ____ messages are more effective.

Real Damage

If consumer actually is harmed by deception (intentional or unintentional), use head-on strategy to fix it -NO denial -Accept and apologize and change -Tylenol: change in production design = good -GM: deaths ignored due to cost-benefit = bad

Gain frame

In decision making - a message that emphasizes benefits. sounds better. -You will live longer if you quit smoking

Loss frame

In decision making - a message that emphasizes costs. More compelling in risky situations -You will die sooner if you do not quite smoking

Dominant

In-store confusion can lead to loss of sales for ______ brand

Prospect Theory

Individuals are more sensitive to minor losses than to minor gains. We do more to get out of pain than we do for gain

Coke

Industry leader. Return to roots campaign - glass bottles and two new flavors that are old-fashioned -Emotional approach, not informative

Leaders

Industry leaders should advertise leadership. -Affect referral -Status quo

Distribution

Inertia needs ____. Reminder ads + package consistency are essential

Social support

Influences judgment forming - decisions based on being social rewards and punishments based on choices -eat / drink things that aren't good, like beer = bud light sells it as a friendship / bonding activity

Limited

Info processing is _____, even with important purchases

Info search

Information should be simple and easy to use -Focus on one point, not all of them -Southwest: no frills, cheapest -Simplicity: VW Beetle -Focus point: Timex light used to recover post-bombing

feelings facts

It's okay to exaggerate _____, not _____

Information evaluation

Looking at multiple dimensions for multiple options

Uncertain

Loss frames are the better choice when outcomes are fairly _____

Variety seeking

Low involvement, low habit

Variety Seeking

Low involvement, low habit. Sensation seeking. Use of consumption to add spice to life. -Consequences of incorrect choices are few, benefits are fun + excitement

Maintain status quo

Maintaining loyalty -Coca cola: "real thing" "brings you happiness" -Pepsi Challenge: blind tasting of coke + pepsi - very effective -Coke repositions with info - ad listing attributes of coke = doesn't go well -Coke returns to old shape and "happiness" approach bc info in the market kept things in flux -

Sources of Miscomprehension

Many ways people can be confused about message -every day language (may = will, on average = exact prediction) -Not always explicitly wrong, but can be misleading result assumption -misleading serving sizes / nutritional info -Omissions (eggs are good for you - who are they good for? EVERYONE?) -Piecemeal data: parts are true, whole is inferred -Reversing causality: Smart shoppers shop at kmart -Inferring causality from correlation: red wine = heart healthy

Perception of performance

Marketing tells us which product is "Better" or "premium" based on price paid, when not really distinguishable from generic product in blind tests -Measure of brand equity -Whole foods vs walmart strawberries

Place info where it will be used

Memory retrieval cue - providing info to consumers based on time/place to cue an association -Dunkin' Donuts: app gives coupon when you're near a starbucks -Prescription drug abuse ads on dispensing bags

Misperception

Misunderstanding an ad's intended message -Many factors: incorrect consumer beliefs, marketing by brands, competitive activity against your brand, industry level communication, market rumors

Deception

Misunderstanding between ads intended message and truth - prove ads are contrary to facts -Encoding failures, the claim is discrepant from the facts -"Proven to work"

Misleading

Misunderstanding between ads intended message and truth - prove customer perceptions are contrary to advertising

Models of judgment

Models of information, emotional and other models of choice - scripted behaviors, context effects

Compromise effect

Most people will choose the middle of three options

Hefty Strategy

Moving out of inertia - highlight the problem, increase info, provide a solution -Create a problem so people feel like they can make a wrong choice -package design = more attractive (also puffs vs kleenex)

Memory = meaning based

Networks of pre-existing knowledge support meaning and memory -recalling #'s is hard -Storytelling / acronyms are easy

Low involvement decision making

No explicit acknowledgment of problem - no perceived consequences for making an incorrect choice

Dominant

Out of store confusion strengthens _____ brand

Loyalty Buy

People do not need info, they buy based off of habit and dedication to a brand

Ads transform experiences

Perception (how we see, remember, interpret) is influences by ads. Experiences do not equal reality -Framing can transform experiences -Transformational advertising -Larger than life experiences

Expectations

Post-purchase satisfaction driven by ____?

High involvement decision making

Problem - solution processes

Attack

Providing brand info is the best _____ against competition -For any brand that is not #1 in market -Throws market into flux, can unseat industry leader -Can allow smaller brands to capture more market share

Product + Transformational Ads

Providing verifiable product characteristics that support the expectations created by ads -Freezer bags: color change with click shut -Avid: spotless ash trays -Diet Pepsi: skinny can -SW: No frills

Encoding

Putting it in the mind. 10 rules

Memory Retrieval

Recalling the encoded information -Little Caesar's: pizza pick up --> pizza delivery, delivery reminds people of Domino's -Downside of brand extension as a strategy to enter market with dominant brands

Substitution effect

Replacing offering A with offering A' reduces sales for A

Account executives

Represent the voice of the client

Account Planners

Represent the voice of the consumer (thinking, acting, ways to express emotion)

Framing

Small changes in contact that change the way it is interpreted by consumers. -Experiences can be transformed by this Gains vs losses, emotional vs rational, independent vs dependent consumers, concrete # vs probabilities

Stickiness

Some ideas and associations really land and stand out in collective mind of consumers -Man on the moon: motivated country, JFK -Alliteration: simple, imagery-inducing, unexpected, unique, evoked emotions of pride and patriotism

Associative network model

Spreading activation - each concept / idea is memory node which is associated with other nodes -when you cue one, the activation travels down a pathway to a connected node -need to strengthen brand and its association without cuing other brands/associations -Pepsi / red / coke vs. coke / happiness does not cue Disney

Info pre-internet

Stores and sources consulted -Not a lot of consulting done at this time -No external search, internal instead -Friends - past experiences, loyalty buy

Go Daddy

The exception to the rule of figure group principle in involuntary attention. Initial teaser ads to irrelevant it led to googling (recent ads better tie into sex appeals - sexy and smart) Early strategy: sex appeal generates curiosity, leads to googling of brand Later: sexy and smart

Importance Weights

The second strategy to change attitudes. 1) Via advertising 2) Via decoys 3) Via competition

Impact beliefs

To change attitudes - 1) Communicate beliefs (information, exaggeration, analogies, category-based belief / affect transfer from other product categories / parent brands / countries of origin / comparative claims) 2) Add beliefs 3) Change range of beliefs

Communicate Beliefs

To change attitudes by way of impacting beliefs: use -Information (clorox bleach = clean) -Exaggeration (old ad for super glue - not misleading, but humorous) -Analogies (like this, but better) (Hagen Daaz + Sex, Kim K + Sketchers) -Category-based belief -Affect transfer from other product categories, parent brands, countries of origin, comparative claims

Brand

To stamp indelibly. Creating a "brain tattoo", an unmistakable idea, image, attribute, or emotion in the mind the prospect

Brands triggering affect

Toyota: 1.5 million memories Coke: real thing Heinz: not what he likes Absolut: no label Evian: info vs angel (different placements in industry)

Dominant brand

Who benefits when there is brand confusion? (not in store)

Frames of Mind

Underprocessing, overprocessing, incorrect processing, quitting processing,

Evaluation

Using information to change what consumers value / desire -Brand attribute: promote link between benefit and brand (Southwest, VW Beetle) -Importance weights: emphasize certain attributes as more important (Timex) -Rules to influence choice: Orajel, job choice

Denial

Usually a bad tactic to handle misperception -Reinforces that miscomprehension - repetition, even with negating statements -Rumor spreading -If association is helpful, denial = repetition = positive (Listerine)

Differentiation

Variety seeking should maximize ______. Sensation seeking.

Principles of Attention

Voluntary and involuntary

Propel

Water market is very competitive - mktg based, hard to break out, not usually informative ads -Gatorade brand - "gatorade water" -Distinguished self but rode on coattails of popular brand Gatorade -Gatorade: many, sports vs Propel: fitness, feminine -Use of info to throw market into flux and gain share

Lexicographic

What rule is most heavily used in advertising?

High Involvement

When choice is important to us, info search occurs (not extensive), so accessibility is SO IMPORTANT

Information

When markets are in flux, people seek ______

Salient

Within involuntary attention - two types of ads - only attention grabbing in context (everything else is in color but ad is black and white, etc.) -Context dependent -Non-smoking ad, Neutrogena, CK

Vivid

Within involuntary attention - two types of ads. This is one attention getting, characteristic of stimulus. Context independent -Pepsi ad (Red color + Cindy Crawford captures attention, but red cued coke) ad was vivid not salient

Minimal

Words and brands have different meanings in different contexts, but _____ infringement on brand rep is the name is applied in a different context

Active

______ learning is better for low involvement decisions than passive behavior

Perceived performance

actual experience + expected performance

Credence Products (services)

have attributes buyers cannot confidently evaluate, even after one or more purchases -buyers tend to rely on the reputation of the brand name, testimonials from someone they know or respect, service quality, and price. -health care; legal, accounting, advertising, consulting, and IT services; baldness cures; pension, financial, and funeral services; and even pet food (since you have to infer if your pet likes it or not). -Very differentiated, not very price sensitive