MAR3504 exam 3

What makes an influencer attractive to consumers?

Persona-driven attributes - Inspiration - Enjoyability - Similarity Content-driven attributes - Informativeness - Visual aesthetics - Expertise

What does Eileen Fischer's research demonstrate about the power of avid fans and brand communities? [Tyra Banks American Next Top Model ]

" Our study shows that avid brand fans—especially those who remain active participants in its community—can play a role in undermining (weakening) the very brand they love. Marketers can't control what happens once consumers start interacting with one another, and unforeseen consequences are likely. Discouraging consumers from sharing their passions with others seems unrealistic. Paying close attention may afford marketers a chance to see what's unfolding and to take appropriate action."

What can we learn from the chicken wing research? Wansink & Payne (2007)

"One environmental cue which may lead to healthful eating entails providing evidence of how much food (or of a beverage) has been consumed. For the most part, after food is eaten, there is no environmental cue - no evidence - of how much was consumed. This could be a reason why it is widely reported that people are poor at estimating how much food they have consumed". Study found MBA Students ate about 27% more chicken wings each on average 7 vs 5 Gender difference: the finding was stronger for men than women We've talked about eating in distracting environments - how it may lead to people over-relying on environmental cues to know when to stop eating (TV show is over, plate is clean, Doritos bag is empty...) Wansink & Payne (2007): "If this is the case, providing an appropriate environmental cue could help one monitor and modify intake better. Preliminary evidence for this comes from reports of alcohol consumption. Wait staff who are concerned about customers over-imbibing have been encouraged to leave bottles on the table (environmental cue) to make people more aware of how much they have drunk."

What situational factors influence cheating behaviors?

"Personal fudge factor" Salience of morality = sign honor code 6-packs of Cokes vs Cash; tokens Impact of in-group/out-group

how do others' choices affect variety and level of satisfaction and regret? Beer Study

(Ariely & Levav, 2000) Local microbrewery: posed as servers tables of 2 or more (solo drinkers excluded) Offered free samples of beer ("special promotion) 100 tables were randomly assigned to 1 of 2 conditions: method of ordering Independent: write down what you want without talking to each other ("special condition of the promotion") Collective: say sequentially out loud which choice you want DVs: beer choice (1 of 4) & order of choice in the Collective condition liking of beer sampled do you wish you'd ordered a different sample of beer? Results: variety seeking was significantly higher in the Collective condition than in the Independent condition people in the Independent condition were much more satisfied with their beer than in the Collective condition people in the Independent condition experienced significantly less regret with their beer choice BUT there was one exception in the Collective ("regular ordering") condition who was the happiest of the group? 1st person to order

What are the elements of the habit loop?

1) Cue Cues = 5 situational characteristics (Belk 1975) The habit starts unconsciously and automatically when the cue is encountered 2) Routine (response without thinking) 3) Reward

True or False : Approximately 40% of women would purchase a beauty product that a company paid an influencer to promote but another 40% were unsure.

True

T/F Trust and # of followers are inversely related?

True, Trust and # of followers are inversely related → nano- and micro-influencers are the most-trusted

How did Mercedes Benz use a cross-media campaign?

Used macro and mega influencers on Instagram and Youtube to film a commercial on their iPhones They had never made a car commercial before and ended up producing a 4-part youtube series on the making of the commercial that ended up being additional marketing for the car They also used a hashtag on twitter to let users choose next outcome of story

What are the ways we can alter habits - either our own or consumers'?

Utilizing conscious thought to 1) identify cues that need to be eliminated or added 2) identify ways to increase or reduce friction 3) identify appropriate rewards 4) swap out the routine Piggybacking Changing habits amid chaos

What is the invisibility cloak illusion? Why does it occur?

We tend to think that others are: Watching us less Listening to us less Paying attention to us less Than they actually are. It occurs due to gaze deflection and availability bias

How often do beauty shoppers visit social media networks? • What are the top 3 sources?

When asked which social media channels they visit most, 1) Instagram was at the top, used daily by 82 % of respondents; 2) Facebook ranked second at 77 % 3) YouTube was third at 59 %

What is WOM? Is it powerful? Why or why not?

Word of Mouth - informal, interpersonal communication - positive or negative - about a brand, product, organization or service WOM is powerful especially when evaluating and adopting NEW products WOM is powerful because senders often "enhance their messages through richness = depth, intensity and vividness"

What factors make us more likely to conform? (text p. 397 and discussed in class)

1) Cultural Pressures: certain cultures encourage conformity to a greater or lesser degree 2) Fear of Deviance: e.g. sanctions or shining people who are different or "not a team player" 3) Commitment : the greater the commitment to a group, e.g. followers of evangelists or rock groups, the gestated the motivation to conform. 4) Group unanimity, size, and expertise: As groups gain pose and size, there is more conformity. 5) Environmental cues: Warm temperature = more likely to conform to the crowd 6) Susceptibility to interpersonal influence: =individual difference, As we grow older, we tend to get more confidence and we tend to be less influenced by other people.

What are some problems with trait theory in consumer research?

1) Many of the scales are not sufficiently valid/reliable Psychologists develop personality tests for specific populations (e.g. the mentally ill) —marketers then "borrow" these tests and apply it to a more general population = questionable relevance 2) Marketers don't administer the tests under the appropriate conditions 3) Marketing Researchers often make changes in the instruments to adapt to their own situations & needs—-they delete or add items & rename variables = dilute the validity of the measures 4) Many traits scales measure overall tendencies (e.g. emotional stability or introversion) marketers use these results to make predictions about purchase of specific brands. 5) Marketers ask consumers to respond to large # of scales w/ no advance thought about how they will relate these measures to consumer behavior- —- researchers use "shotgun approach " bc they follow up on anything that happens to look interesting——this approach capitalizes on chance - — produce distorted results that may not be reproducible in other studies.

What are the 5 situational cues (Belk)?

1) Physical surroundings (location, sounds, lighting) 2)Social surroundings (other people, social roles) 3)Time (of day, season, etc) 4)Task definition (shopping for a gift vs self) 5)Physiological or Psychological states (mood, fatigue, hunger)

How much of our behavior is habitual?

43% (according to Quinn & Wood study 2005) Some people had more habitual behavior like people who work long hours Some people had less Esp. parents living with children, people who have chaos

How can norms be used as a nudge?

:if people wrongly think that most people are committed to a longstanding social norm, a small nudge correcting that misperception can inaugurate large-scale change If choice architects want to shift behavior and to do so with a nudge, they might be able to achieve this by simply informing people about what others are thinking and doing. · Sometimes the thoughts and practices of others are surprising, and hence people are much affected by learning what they are o Informing people about the social norm can be extremely effective: -A norm or practice that is understood to be emerging, or to be increasingly supported, can operate as a powerful nudge, even if it is not yet supported by the majority.

How do we find opinion leaders?

>The self-designating method -Simply ask individuals whether they consider themselves to be opinion leaders -Easy to apply to large group of potential opinion leaders -Inflation or unawareness of own importance /influence >Key informant method -Key informants identify opinion leaders

What is the zero-sum Influence model (PMO)?

A person's decision to buy is affected by a mix of 3 related sources: P: the individual's PRIOR preferences, beliefs, and experiences M: information from MARKETERS O: information from OTHER people Zero-sum: The greater reliance on one source, the lower the need for the other two sources.

What are the top 3 sources of product information for women buying beauty products?

A whopping 62 percent of the women said they follow beauty influencers on social media. When asked where they seek information about beauty products prior to purchasing them, 1) social media influencers ranked highest at nearly 67 percent, 2) followed by third-party product reviews at 59 percent, and beauty professionals at 55 percent. 3) Company advertisements ranked much lower at 44 percent, and public figures and celebrities garnered only 34 percent

What do we learn from Wendy Wood about people with good habits and the lay-beliefs of most Americans on behavior change?

According to Wendy Wood, these people aren't magical ® just good at building the right habits Research shows that willpower is not the best way to achieve goals and to change behavior despite many Americans believing that the best way is through self-control Surveys show that ¾ of Americans believe that they just don't have enough willpower to enact behavior change White bear: thought suppression = backfires Conscious willpower is NOT the driving force behind sustained behavior change

Why do people write reviews?

Altruistic reasons: Help other consumers make better decisions (90%) Reward a company for good service (reciprocity): "they deserved it" (79%) Help a company make an improvement (~75%) To set record straight after unfair review (40%) To get a company to listen (62%) Self-related: Enjoy writing about their own experience i.e. its fun (25%) Recognition or achieve status (badges, likes) Appreciation from others

How does music affect consumer behavior (tempo, affect, perceptions of wine, etc.)?

Areni & Kim (1993) showed that classical music (vs Top 40) led to more sales of expensive wines total number of bottles stayed the same but each bottle cost more on average Results: when powerful music was playing, the wine seemed powerful ratings of the red wine as powerful and heavy were 60% higher while listening to the powerful music than when listening to no music (6.9 vs 4.3on a 10-point scale) ratings of the white wine as powerful and heavy were 32% higher while listening to the powerful music than when listening to no music (5.6 vs 4.3) In fact, the music shifted the ratings of both red and white wines in all of the music conditions to match the type of music played: subtle and refined, mellow and soft and zingy and refreshing Overall, the study shows that "music shifted the perception of the wine in the direction of the mood expressed by the music by 37%" 32% for white wine and 42% for red wine

How does the mere presence of others affect our behavior?

Argo, Dahl, and Manchanda (2005) looked at non-interactive social presence, i.e. the mere presence of other persons in a retail environment Tested 2 IVs: impact of social size (one person vs. three people) and distance to the battery display (close vs. far) the confederates stood either 2 feet or 8 feet from the battery display did NOT engage with the Participants

How influential is WOM on consumer goods sales?

Because we get the word from people we know, WOM tends to be more reliable and trustworthy than messages from more formal marketing channels. And, unlike advertising, WOM often comes with social pressure to conform to these recommendations." WOM influences up to 50% of consumer goods sales. "WOM is especially powerful when the consumer is relatively unfamiliar with the product category. We often encounter these situations in the case of new products (e.g., medications to prevent hair loss) or those that are technologically complex (e.g., smartphones).

Why is trust in influencer reviews critical? What do consumers want to know?

Brands often pay influencers to peddle products; many of the respondents said they only follow influencers who openly disclose their endorsement deals. "Sometimes it's hard to tell which beauty products are sponsored and which ones aren't," one consumer said. "I only trust influencers who are clear about whether they're being paid!" That's important, Vettese says, because consumers actively seek out influencers who share the same skin tones and even skin sensitivities, and they want to trust that influencers actually believe in and use the products they talk about

What types of purchases are most affected by P, M or O?

Cases when P is important: when people have strong preferences For example, food you like and buy at the super market is unlikely to be changed by O or M M: Whenever "P" or "O" is not influential, "M" has room for influence Like when buying something in a store you look at eye-level, BOGO, or packaging, etc Also black friday- "it must be a bargain if its a black friday deal" so you can be more inclined to buy something O: influence varies by product category Most influential/important of the 3 High involvement High risk (monetary or psychological) Perception of significant product differentiation in the category When it's harder to judge quality before purchase Experts are more influential when they: test out the product under similar conditions to the end user AND are credible, informative and trustworthy are entertaining! User reviews: are believed when those people are considered to be "like me" in desires and/or taste

Which types of influencers are millennials least trustful of?

Celebrity- and mega- influencers were once seen as being more authentic than traditional advertising → now trust is falling: • 52% said they trust celebrity- and mega- influencers less than they used to Trust and # of followers are inversely related → nano- and micro-influencers are the most-trusted

What did Matthew Salagnik et al.'s study about music downloads show?

Created artificial music market, gave it to participants who hadn't heard these songs, if they listened to a song they like they should download it Half asked to make decision independently, half could see how many times each song had been downloaded by other participants Showed: individuals were far more likely to download songs that had been previously downloaded in significant numbers, and far less likely to download songs that had not been as popular. Informational and reputational cascades

What did we learn from Dan Ariely in his TED Talk on Cheating? Why do we think it's ok to cheat?

Dan Ariely concluded that people have a "personal fudge factor" that allows them to gain the benefits of low-level cheating without damaging the view of themselves. Ariely also found that paying people in tokens that they could exchange for cash doubled the amount of cheating compared to paying people directly in cash. The example for your office is that people are much more likely to take home a pack of pens than a dollar bill sitting on the shelf in the supply closet. Ariely also found that when people saw an outsider cheating, cheating among the group went down, but when a colleague cheated, cheating among the group went up. This seems to show that there is a big influence by peers on cheating behavior.

What is the Good Samaritan study? What were the levels of the IV? What did it demonstrate?

Darley & Batson (1973) ran this study with seminary students i.e. people studying to become Christian clergy (reverends, pastors, etc) The students were sent across campus to deliver a practice sermon and were in one of 3 conditions (by random assignment): 1. "Late manipulation": they were in a hurry (because they thought they were late for the practice sermon) 2. "On-time manipulation": they felt comfortably just on-time 3. "Ahead of Schedule manipulation": they had plenty of time to walk across campus Results: Yet when randomly assigned to 1 of 3 conditions, it was the level of hurriedness that mattered - NOT the personality dimensions

What is social identity theory?

Each of us has several "selves" that relate to groups. These linkages are so important that we think of ourselves not just as I, but also as we. We favor others that we feel share the same identify--even if that identity is superficial and virtually meaningless

What is the minimal group paradigm?

Even when they arbitrarily assign subjects to one group or another people favor those who wind up in the same group

eclothed cognition example/study

Experiment 2 Hajo & Galinsky (2012) wearing a doctor's coat (which was shown in a pre-test to be associated with attentiveness and carefulness) wearing an "artistic painter's" coat Seeing a doctor's coat in the lab (to rule out priming). "To measure sustained attention, we administered four comparative visual search tasks. Each task displayed two pictures next to each other on a computer screen. The pictures were identical except for minor differences. For each pair of pictures, participants were told that there were differences, and they were instructed to write down as quickly as possible as many differences as they could find." Results? The performance of the task improved when putting on the doctor's coat! ESSENTIAL TO WEAR A COAT (PRIMING PARTICIPANTS) SYMBOLIC MEANING (DOCTOR VS PAINTER)

What did we learn from the Target and P&G Febreze examples?

Failed because: Woman with a bunch of cats couldn't smell the strong smells that other people who would walk in smelled because she was so used to it People don't have the cues to realize they may need the product Consumers didn't know they needed it A girl added spraying febreeze onto her cleaning routine because cleaning is already a habit, so they needed to advertise it in this way - piggybacking onto another routine P&G utilized piggybacking Target realized that times of chaos can be the perfect time to catch consumers for life During chaos, people experience habit discontinuity, which is a perfect time to implement changes to habits

What is friction?

Friction = restraining forces that impede action Using friction to create new good habits: Make it easy and Make it fun

What is the broader implication for governments creating policies and designing cities?

Governments need to understand the habits of the people living in that state, when creating policies and designing cities. Across the country, in different states people experience different types of environments. We see that people in the U.S. have different habits in different states. For example, people exercise more in Colorado, in D.C., and in Alaska than many other parts of the country and they also tend to be healthier. policymakers have a real responsibility to understand what options they're giving us in the environments we live in. Are there sidewalks? Are they building a pedestrian-friendly community where people will get exercise just by walking?

How does grassroots marketing motivate WOM? What's an example?

Grassroots marketing is a strategy where brands create content that is highly targeted to a niche or specific target audience. The goal is to reach a target audience with content that inspires them to amplify and share your message. "grassroots efforts that motivate consumers to spread a brand's message are what makes a hit product." An example would be: Altoids mints has been around for more than 200 years but the brand only then became popular among a larger market near the end of the 20th century. How did this happen- - - began in the 1980s with smokers & coffee drinkers who would consume them in the blossoming Seattle club scene, thus you had to be "in the know" to consume the mints. Kraft hired advertising agency Leo Burnett to create a marketing campaign that included retro posters & low-tech media- - - in order not to make the mints mainstream—thus through WOM younger people started to enjoy the retro mints.

What did you learn about asking for help?

It is easier to receive help, than we would think It is always best to ask in person, to get the best possible results

What did the researchers find in other studies? [Manager in red sneakers article]

Harvard University students were asked about their perceptions of professors based on how they looked. They found that Harvard students viewed an unshaven male professor who wore a T-shirt to have higher professional status and competence than a shaven professor who wore a tie. People were asked in an online survey about a man who attended a formal black-tie party at his golf club wearing either a black bowtie—the norm that most of the other men were following—or a nonconforming red bowtie. Survey-takers perceived the man wearing a red bowtie as a higher-status member and a better golfer as compared to a member wearing a black bowtie, as long as the man wearing the red tie intentionally dressed differently. In cases where the man unknowingly wore the wrong-color bowtie, the higher status points started to evaporate. People participated in an online survey about a contestant who entered a prestigious MIT young entrepreneurs competition. Survey respondents perceived the contestant as having higher status when he used his own presentation layout versus the official MIT layout that other participants in the contest used. And in this study, the researchers also tested the observers' "need for uniqueness," finding that people with a higher affinity for uniqueness assigned greater status, competence, and autonomy to the nonconformer than the conformer. The researchers studied the reactions of executives attending a formal symposium at a prestigious business school in which a professor wore red Converse sneakers while teaching in the classroom. The executives who said they owned a pair of "distinctive shoes" gave the professor higher professional status than those who did not-confirming the idea that people with "high levels of need for uniqueness" grant more status points to nonconformity than people with "low levels of need for uniqueness

What did we learn from Michael Luca's research on Yelp in Seattle?

He used a novel data-set combining: Reviews from Yelp.com Seattle Restaurant Sales data from the Washington State Department of Revenue. 3 key findings: One star increase in Yelp rating leads to a 5-9% increase in revenue This effect is driven by independent restaurants: Ratings do not effect chain restaurants and Chain restaurants have declined in market shares as Yelp penetration has increased →this suggests that online consumer reviews have substituted the traditional forms of reputation. Additional findings: consumer response the restaurants average rating was affected by the # of reviews and whether those reviews were written by 'elite' yelpers [aka social power influence...opinion leader example]

When are expert reviews influential?

Highly influential when: Purchase = high involvement Monetary and/or psychological risk = high Difficult for consumers to judge product quality prior to purchase

Which three (3) needs do social media influencers (SMIs) fulfill? And how do they fulfill each of these 3 needs?

Ideality = desire to seek a person with traits they admire (and feel they personally lack) Relatedness = desire to feel socially connected to others Competence = desire to feel capable or effective

How influential are influencers with female consumers considering beauty products?

In evaluating beauty products, the women said they trust third-party product reviews most and company advertisements least. And they said influencer marketing sways their purchasing decisions most, while direct-mail marketing is the least effective way to reach them.

How do individuals' predictions about others' reactions differ from reality?

In general, are they higher than expected (e.g. receiving a compliment) 1. People feel anxious prior to complimenting a stranger 2. People are concerned about their ability to give a compliment competently

What are norms?

Informal rules created by members in a society that govern behavior

What is informative conformity?

Informative Conformity.(social proof) : Conformity occurs because a group's behavior helps you learn what's right or true in an ambiguous situation or others' behavior seems to provide information about the correct behavior and you lack knowledge/information. In informative conformity we tend to copy people whose circumstances resemble our own (staying in the same hotel room, and knowing others before you in the same room re-used their linens during their stay—-causes one to reuse as well based on this information) Informative conformity leads to private acceptance (not just mere compliance) often because those others are seen as experts/knowledgeable .....i.e. we change our inner beliefs based on perceiving the information provided as correct.

What is the difference between intrinsic and extrinsic rewards?

Intrinsic rewards are psychological rewards, non physical Examples: listening to music while at the gym, feeling accomplished Extrinsic rewards are physical rewards, tangible Examples; trophies, money, bonuses.

How does voting location affect voters' choices?

Jonah Berger et al (2008) gathered data from Arizona's 2000 general election: 40% assigned to vote in churches; 26% in schools; 10% in community centers, Rest: mix of apartment buildings, golf courses, and even RV parks Berger and colleagues were interested in looking at where people vote, e.g. at church versus a school vs some other building to see if it changes how they vote. The initiative: raising a sales tax from 5 to 5.6% to support public schools. It was fiercely debated. (And no one likes paying more taxes.) Results: Voting in schools made people more likely to support a school funding initiative (even after controlling for geographical differences in political preferences and demographics) Follow-up lab experiments where participants voted in rooms that looked like classrooms vs office buildings similar findings (stronger results, actually) Suggests that voting in churches might change how one votes on gay marriage or stem cell initiatives Because it may prompt people to think more about the church's doctrine and how the church/God would want you to behave (remember the effect of The Ten Commandments on cheating behavior?)

What did the tea, coffee, and milk study demonstrate? (see the "Cues of being watched" article)

Lab experiments have shown that people increase their cooperation when they know their behavior is being observed by others Lab studies have also showed this to occur even when it's "eye-like" spots on a computer screen and they are told their behavior is anonymous Bateson et al (2006) - assigned article - wanted to see if this occurs in a natural setting = Office kitchen at a British University had an "honesty box" - they had to pay $$ for each coffee/tea/milk consumed The system was in place for several years Researchers decided to add a picture along with the price list Tea, coffee and milk prices: 30, 50 & 10 pence 10 weeks: different image posted above the price list (no explanation given) Either eyes or flowers Different images are used each week to control for any effect attributable to any one particular image Results: Weeks with eye images almost 3x as much $ deposited Stimuli involving the eyes make us behave in a more moral and honest way

What are the implications of an emotional bond between an SMI and a follower?

Leads them to accept product/brand recommendations

What did his follow-up study reveal? [Luca Yelp Review study]

Luca Follow-up study about fake Yelp Reviews, based on two data sets. 4 key findings: 16% of restaurants reviews are filtered by Yelp's algorithm (these reviews are alerted to be more extreme compared to other reviews and overall very sus, amount of sus reviews has grown significantly over time Restaurant is more likely to commit fraud when its reputation is weak. (few reviews or recent bad reviews) Chain restaurants are less likely to commit review fraud because there is too much risk involved...imagine Starbucks is found to have fake reviews at their locations. When competition increases in the area (within the same food type) restaurants are more likely to receive unfavorable fake reviews.

What do average user reviews provide above and beyond expert reviews?

May have similar standards e.g. not a highly trained "ear" Getting another average person's opinion who went through the same decision gives the consumer a sense of security It's more relatable/trustworthy Paid for the products vs getting it for free so they can assess value with own money paid Has purchased the product to use it, rather than just test it/review it Has used the product in "real world conditions" rather than possibly just in a lab

What types of reference groups did we discuss?

Membership Groups: Avoidance Groups: Aspirational groups:

What were the details and outcomes of Asch's studies? (see also Ch. 3 in "Nudge")

Participants were asked to judge the length of a line in comparison to three other lines. 50-80% of participants yielded to erroneous judgment when other members of the group purposely said the incorrect answer but 1/3 didn't yield at all

When are people under-confident? When are they over-confident?

People are generally overconfident (e.g. better drivers, more creative, etc) People are under-confident when assessing own social connectedness

When do groups influence consumption?

Membership Groups: Formal: has outside structure, an institution w/ rules of conduct (e.g. golf club) vs. Informal (friends, gardening club, protest group) a. at the brand level and/or category level? ***And reference groups affect product and brand choices differently, depending on the nature of the product, i.e. private/public and necessity/luxury. Necessity = something owned by nearly everyone "being necessary for ordinary, day-to-day living" Luxury = have a degree of exclusivity Publicly consumed = products that will be noticed and identified and therefore are more susceptible to reference group influence Since you need necessities anyway, your reference group probably won't influence the category purchase much. Since goods consumed privately will not be seen by reference groups, the brand selected will not be influenced by them Quadrant A: Think of shoes, we need them as a category, but we wear them in public, so the brand may matter, such as Nike, Toms, etc. Your reference group will likely influence the brand selected Quadrant B: Think of a mattress, you need it but no one is going to really see you use it, so not much influence. Your reference group will not really influence either. Quadrant C: Think of a boat, you don't need one, and having one is a luxury. Your reference group will most likely influence both the category purchase and brand selected Quadrant D: Think of appliances that aren't necessary, but might be nice to have, like bread makers; since luxury, having one matters, since private, brand really doesn't matter

What did Ariely and Levav teach us about:

Much research on group influence has shown the convergence (converging) of judgment and choice.

How doe marketers use personality dimensions?

No marketer wants to present a message that is off key or irrelevant; personality science offers the chance to emphasize w/ individuals and engage them w/ the message , advertisement, or content in a way that is more likely to resonate w/ them.

What are the 2 types of conformity we discussed? How do they differ?

Normative Conformity: ------Normative conformity may only lead to "mere compliance", not changing the real inner you. Informative Conformity.(social proof) ----Informative conformity ,we change our inner beliefs based on perceiving the information provided as correct.

What is normative conformity?

Normative Conformity: the conformity to meet the expectations of others, i.e. social, group, cultural norms in order to be: liked, to fit in, to not appear, foolish in front of others, to not be rejected by others (in group goals that require unanimity—the group tends to punish individuals that deviate in part bc they block group movement.) Normative conformity may only lead to "mere compliance", not changing the real inner you.

Why are opinion leaders extremely valuable information sources?

Opinion leaders are extremely valuable information sources because they possess the social power we discussed earlier in the chapter: They are technically competent, so they possess expert power. They prescreen, evaluate, and synthesize product information in an unbiased way, so they possess knowledge power. They are socially active and highly interconnected in their communities. They are likely to hold offices in community groups and clubs and to be active outside of the home. They tend to be similar to the consumer in terms of their values and beliefs, so they possess referent power. [Note that although opinion leaders are set apart by their interest or expertise in a product category, they are more convincing to the extent that they are homophilous rather than heterophilous.] Opinion leaders are often among the first to buy new products, so they absorb much of the risk.

How did the impact of a male greeter affect the buying behavior of men?

Otterbring's prediction: being greeted by a dominant, attractive male might trigger men to compete by signaling status, aka "intra-sexual competition"... Physical dominance is not the same as attractiveness Many high-status product categories have certainly embraced the latter for ages, it's the tallness and masculinity that truly matters for the Abercrombie & Fitch effect to take place. Men don't buy beauty they buy dominance.

What is the Abercrombie & Fitch effect?

Otterbring's study that tested how men who are not physically dominant or tall (a attractive determinant for women) react when being greeted by a dominant, attractive male might trigger men to compete by signaling status, aka "intra-sexual competition **if you step into Abercrombie and Fitch store, your first interaction would be with a six pack employee

What were the details and outcomes of Sherif's studies? (see also Ch. 3 in "Nudge")

Participants sat alone in a dark room and stared at a light 15 feet away and were asked to report how much it moved The group converged to a common estimate; the person whose estimate of movement was greatly different to the other two in the group conformed to the view of the other two

What are the details and outcomes of the Milgram studies?

Participants were all men (solicited through a newspaper ad): aged 20-50 years, various occupations: plumbers to CEOs, incomplete high school to doctorate degrees The Researcher had both legitimate and expert power. Milgram summarized, "It is the extreme willingness of adults to go to almost any lengths on the command of an authority that constitutes the chief finding of the study." How much voltage would the participant give because someone was wearing a lab coat? Follow up studies: when the power was removed, no one gave the maximum shock, in other words, when: Fellow subject was assigned the "Researcher" role, "learner" encouraged continuance, there were two researchers and the Teacher couldn't tell who was the "bigger" boss.

What does it mean that personality is best thought of as a moderator?

Personality may be best thought as a moderator in other words personality may temper or accentuate the effects of a given situation Example: Neuroticism accentuates (moderates) the impact of final exams. Aka perceived stress among students is similar in the summertime regardless of score on neuroticism —-but once the final exam comes, students of low and high neuroticism will show a difference in regards to the level of perceived stress.

How can we manipulate perceived power?

Physically: Clothing (professional attire: assertive & confident, Lab coats: symbolize, attentiveness and precise work Uniforms) We can manipulate how we feel incidental postures have also been shown to manipulate power experienced by individuals (Example: size/shape of a workplace layout, Example: a large, expansive driver's seat = more power) Structurally: have people imagine themselves or role play in high/lower power roles e.g. boss & subordinate; teacher & student; coach and student Cognitively: "Recall a time / write about a time when you felt powerful" (vs powerless) By completing word fragments that are either associated with or dissociated from power (priming) or To simply imagine going either up or down an escalator When do you feel most powerful... Various Consumer Behavior studies show individuals who have power / feel powerful: take more risks and gamble have greater confidence in their own thoughts engage in selfish behaviors such as lying, cheating on tasks, and in video games ($$) engage in more hit and runs and commit more traffic violations are more willing to pay for high-status items spend more on self (while lower power individuals spend more on others), i.e. are more likely to voice dissatisfaction

What is the red sneakers effect?

Red sneakers effect (Bellezza, Gino, and Kennan 2013) Red sneakers effect describes a brave person who sports a pair of red sneakers in a professional setting—-=someone being brave and non-conforming. Field study conducted in Milan. 2 groups of participants; Shop assistants in MIlan Italy at a high-end stores in Mila (Armani, Valentino, etc.) Pedestrians in Milan. DV (dependent variable ) Asked the shop assistants to indicate the status of luxury client when dressed either in (how wealthy do u think this person is) gym clothes OR 2) elegant dress & coat Results : The pedestrians thought that those walking in with a dressy outfit (conforming) were more likely to purchase the luxury items—more wealthy While the opposite occurred with the shop assistances: who thought those who came in gym outfits (non conforming) were more likely to be wealthy aka a luxury client.

What are the 5 types of social power?

Referent Power: If a person admires the qualities of a person or group, they tend to copy Information/ Expert Power: Followers believe that the individual has expert knowledge or information relevant to them or to the job/task at hand and so they are able to influence opinions (credibility of the source) Reward Power: When the individual can offer rewards for doing something or completing tasks/behaviors. Friends "reward" us with approval if we own the "right" objects. Coercive Power: Influence someone because of social or physical intimidation; the threat of punishment. Legitimate Power (Authority): Followers believe that the leader has the "right" to instruct them and that they have an obligation to follow instructions; the individual has authority because of that individual's position in that context.

what is reputational cascade?

Reputational cascade: people go along with others not because they have learned from them, but because they do not want to incur their wrath or disapproval

What were the important findings in the battery study with respect to emotions and battery choice?

Results: What do you see? Interactions: Emotions: more negative emotions and Less positive emotions experienced when 3 people vs 1 nearby No differences when "far" away Batteries purchased: No differences in the "far" condition Also, people in the control group, i.e. no people anywhere in the aisle were more likely to buy the cheapest brand

Why do Lululemon and Free People add user-generated content to their Instagram accounts and websites?

Savvy firms can monitor their social media channels for eloquent endorsements and integrate those endorsements into their marketing messages to avoid a lack of behavior influence

How does scent affect consumer mental associations and behavior?

Scented products (Krishna, Lwin, and Morrin, 2009) People's recall of verbal information declines rapidly over time... Scent, however, does not Scented products: Unaided recall (Krishna, Lwin, and Morrin, 2009) participants were asked to recall the brand name and any other information from the ad: 2 hours later AND 2 weeks later At 2 hours, both scents helped my memory, but especially the pine scent At 2 weeks both scents helped memories equally, compared to no scent (occurred even though the scent was NOT reintroduced at the time of recall) Conclusion: the addition of a scent at encoding enhanced memory of a product for which scent is not usually an attribute

What is serial reproduction?

Serial Reproduction is a technique to study how information changes as people transmit it to another where each person has to repeat the stimulus for the next person (like the game telephone)

What did the research on non-conformity show?

Since nonconformity often has a social cost, observers may infer that a non conforming individual is in a powerful position that allows her/him to risk the social costs of nonconformity without fear of losing her place in the social hierarchy. But there are limitations on positive impressions of non-conformity, i.e. if we are unsure why the person is violating a norm or Realize the person is not doing it intentionally aka clueless Are unfamiliar with the context ( as shown in the red sneakers study—the pedestrians did not know that usually wealthy people come to luxury stores in gym clothes. )

What is social impact theory?

Social Impact Theory = as the size of a social presence increases: the group should have an increasing impact AND people generally engage in impression management behaviors

What is piggybacking?

Stacking a new habit on an existing habit Floss example- easy to add on after brushing teeth than before

What are the various ways that music affects consumer behavior (tempo, choice, quality perception, taste perception)? (see the "Can Music Change" article)

Studies have shown that: Music tempo affects the speed of consumer behavior: fast music: shoppers move around a supermarket more quickly fast music: diners eat more quickly Music can influence consumers' effect towards a student cafeteria or bank when they feel good about the music, they indicate they are more likely to return to the cafeteria or have a higher desire to affiliate with bank employees or others within the cafeteria

How did John & Emrich's test the effects of "likes"? What did the research show?

Study 1- half the participants were invited to like a new cosmetics brand on Facebook; most accepted. The other half did not receive this invitation. All participants were then given coupons for a free sample redemption would serve as a proxy for purchasing. Members of the two groups were equally likely to redeem the coupon; it didn't matter whether they had been invited to like the Facebook page or not. Study 2- To test the effects of social media endorsements, we asked 728 people who had recently liked a brand for the e-mail addresses of three friends. We sent each friend a coupon for one of the brand's products, varying the information provided about the referral. In each group, one person was told that his or her friend liked the brand in the conventional, offline sense and had sent the coupon. The second person was told that his or her friend liked the brand on Facebook and had sent the coupon. The third person was told only that his or her friend had sent the coupon; people in this category made up the control group. We then compared coupon redemption rates among the three categories. We found that 6% of those told about an offline endorsement redeemed the coupon, whereas just 4% of those told about a Facebook like did so. And the redemption rate among the control group was 5%; that is, liking a brand on Facebook had no enhancing effect on the purchasing habits of friends. Study 3- we invited all new Vitality customers to participate in an online survey about Vitality and Facebook, during the course of which a randomly selected group was invited to like Vitality on Facebook, with the others forming a control group. We monitored the points accumulated by customers in both groups over the next four months By virtue of having liked Vitality, the customers in the first group could engage with the company on its Facebook page-a space in which it invests heavily. The page has innovative branded content, including an app that lets people share their health success stories, ask questions of health experts, and participate in polls about upcoming fitness activities. But unless customers intentionally visit the page, this content is unlikely to appear in their news feeds, even if they have liked the company; Facebook's algorithms will probably filter it out. Therefore, we suspected that Vitality's investment in branded content on its page might be for naught. Indeed, when we compared the two groups of participants; we found no difference in behavior; those who had been invited to like the Facebook page accumulated no more points than the others. Once again, merely liking a page did not change behavior.

What is digital psychometrics?

The assessment of psychological characteristics using our digital footprints

What does the power of the situation have to say about personality dimensions?

The power of the situation: we are not always predictable across situation

What is conformity?

The tendency to align our attitudes, beliefs, and behaviors with those around us as a reaction to real or imagined social pressure

What is the fundamental attribution error?

The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others

What's the impact of a "Like" on social media?

There is virtually no correlation between likes and consumer behavior

What examples of intrasexual competition among women did we discuss in class?

These studies looked at intra-sexual competition between men. Other research shows women respond to intra-sexual competition too: For example, after seeing pictures of attractive women, women are more likely: To favor weight loss pills To favor extreme exercise To favor excessive suntanning

What was the M&M and carrot study that Wendy conducted with Lin and Monterosso?

This was a study that I (Wendy Wood) did with Pei-Ying Lin and John Monterosso. We trained people to choose carrots in a computer game. People played the game when they were hungry and they actually got the carrots. They had to move a joystick in the direction of the carrots when they saw them on the screen, and then they won carrots and got to eat them. All of our participants liked carrots, but they also liked chocolate. And after we had trained people to choose carrots by moving a joystick toward the carrots whenever they saw them on the screen, we gave them the opportunity to choose M&M's if they wanted to. Now, when the screen was set up in just the same way as it was during training, people continued to choose carrots. Over 60 percent of them chose the carrots. But when the screen changed and they had to actually move the joystick in a different direction, then they stopped to think. And many more of them chose M&M's. In a way, this turns the standard thinking about habits upside down. People think habits are the bad things that they fall back on when they're not thinking about what they want. But in our study, we formed beneficial habits to choose healthy food that, when people thought about it, they disrupted.

which goals consumers may have in this ordering context ?

To be seen as unique, rather than "copying" others' orders and conforming to the "group's" decision (self-presentation goal) so you order something different to minimize regret (loss aversion at work - you want to avoid seeing someone at your table enjoying something better than you ordered) so you order the same dish/drink as someone else To gather information about options (either share the dish/drink or just talk about how good the various options are once they arrive) The objective of their work was to examine the idea that individual choice in a group context reflects trade-offs (or sacrifices) of different goals

What is a habit?

a mental association between a context cue and a response that develops as we repeat an action in that context for a reward They are self-reinforcing: they can be difficult to start, but once in place, they have a life of their own Automaticity: the behavior stops being conscious and becomes automatic "It's what you usually do that you fall back on" Wendy Wood A habit is not always the easiest thing to do, it's what you usually do Acquired gradually and often originate in goal pursuit, but then become well-practiced responses Triggered by stable environmental cues

What is a market maven?

a person who often serves as a source of information about marketplace activities

What is a surrogate consumer?

a professional who is retained to evaluate or make purchases on behalf of a consumer. [example: interior decorator, professional shopper]

What is the Big 5 Model of personality? What are its 5 dimensions?

a set of 5 dimensions that form the basis of personality. Openness to experience, conscientiousness, extroversion , agreeableness, and neuroticism. (Developed by McCrae & Costa, 1990) Also known as OCEAN model, widely used among researchers and applied in social psychology & consumer research. Openness to experience: degree a person is to new way of doing things Conscientiousness: level of organization/ structure a person needs Extroversion: How well a person tolerates stimulation from people Agreeableness:level of pro-social behaviors (trustworthy, helpful, kind etc.) Neuroticism ( emotional instability): how well a person copes w/ stress.

What can brands learn - and leverage - from this research?

brands should take note that the way in which consumers signal status has changed in the last century, and many people these days applaud original products over mainstream choices. Luxury marketers should be aware of the different ways that people display status and they may find ways to capitalize on the consumer's quest for uniqueness. "One way brands can leverage this is by launching line extensions that are seen as unique and nonconforming," Keinan says. The article notes that some products on the market already seem to be "engineered for nonconformity," such as the LittleMissMatched brand that intentionally sells a mishmash of different socks in packs of three with the tagline "nothing matches, but anything goes." Deciding to be different can win points in other corporate ways, too. "Just like people signal status by not conforming, brands can also signal status with a nonconforming advertising campaign or a CEO behaving in a nonconforming way," Keinan says. "It sends the signal that this CEO and company are confident enough that they can behave in a nonconforming way because they are a high-status brand."

How can companies increase consumer engagement with the brands and products?

brands will find it fruitful to choose online postings and other user generated content that are more creative and meaningful than simple likes.

What are membership groups?

close groups with which we interact on a regular basis (family or friendship ties, work, hobby, sport, fraternity/sorority, etc.)

Which stages does WOM particularly influence?

consumers rely on WOM in the later stages of evaluation and adoption. The more positive information consumers get about a product from peers, the more likely they will be to adopt the product.

What is the liking gap?

following interactions, people systematically underestimated how much their conversation partners liked them and enjoyed their company

Habits often originate in ________ but then become well-practiced responses, devoid of conscious decision making.

goal pursuit

What are aspirational groups?

groups that we identify or admire (often from afar) and aspire to be like. We often try to emulate them through the consumption of certain brands/products, e.g. athletes, successful entrepreneurs (Warren Buffett), blog writers

What are influencers?

individuals who: 1) Have a dedicated social following 2) Are viewed as experts [within their niche] 3) Are specialists at generating content that consumers interact with → helps spread on social media 4) Post to any social media platform in exchange for ----compensation -----Money or -----Free products, services, trips, experiences

Many consumers look for influencers who are willing to give products negative reviews, since it's considered a sign of _________.

legitimacy

People who live with others will have _________ habitual behavior than people working long hours.

less

No matter how randomized the researcher made the participant groups, the participants continually had favorable biases to other people placed in their group, regardless of the number of times their group changed. This is an example of a/the __________.

minimum group paradigm

What are avoidance groups?

negative reference groups that you want to distance yourself from.

What is an informational cascade?

occurs when people receive information from the choices of others Types of conversations that create information cascades: influence network; communicating the information to one another and participating in a two-way dialogue with the other opinion leader

_____________are regarded as the best information source when consumers want to make the best decision and avoid risk.

other people

How many people say they understand habits?

over 80%

What happens when people are tired or distracted?

people are distracted or feeling particularly tired or overwhelmed, they fall back on good habits as well as bad habits.

What are trait theories of personality?

personality = the sum of a set of traits or qualities about a person, and these can be used to predict or explain consumption behavior. Assume traits are common to many individuals but the exact combination reflects the personality of the individual Traits are relatively stable and Traits exert fairly universal effects on behavior (regardless of the environment) Trait = predispositions / differences among people (measured by adjectives and phrases with scales/inventories)

Adidas shoes are an example of a _________.

public necessity

What does nonconformity signal?

researchers found that observers viewed a nonconforming person to have a heightened status and more competence, particularly when they believed the person was aware of the established norm but deliberately chose to make a fashion statement by wearing a standout style. This person was often viewed as autonomous; confident enough to act independently and create his or her own rules.

What types of rewards are best to creating habits?

short term, immediate rewards

What is homophily?

the degree to which a pair of individuals is similar in terms of education, social status, and beliefs.

What is personality?

the set of unique characteristics that forms who they are. What sets people apart from one another.

What is enclothed cognition?

the systematic influence that clothes have on the wearer's psychological processes

What is opinion leadership?

when a person who is knowledgeable about products and who frequently is able to influence others' attitudes or behaviors with regard to a product category.

How is it different from the spotlight effect? [How does invisibility cloak differ from spotlight?]

when people are focused on a specific aspect or feature of themselves they tend to overestimate the extent to which others are also focused on that aspect or feature When the experimenter gave participants a shirt to wear, rendering their shirt salient to them, they believed the shirt drew more attention than it actually did[ spotlight effect]...despite participants' belief that their shirt was drawing attention, participants did not believe this attention generalized to themselves on the whole... Observers ... actually observed the target participant more than the target believed regardless of which shirt the target was wearing [invisibility cloak]

What is sharpening?

when we exaggerate prominent details

What is leveling?

when we omit details in order to simplify the structure