Adv150 UIUC

Sources of Maturation

*Location- may get a car or apartment bc ur moving locations. *Ikea shows what it wud be like to live in a studio apartment that is really small-- how to make it cool with decor and furniture. *at different McDonalds u can order other things like a beer in Europe. *Family- you may get married and have babies or need to make certain purchases for your wedding. *diapers, baby formula *kids get older and play sports and then they go to college and buying purchases change again *Resources- In college we have limited resources and stay on a strict budget. *then after you graduate you get a job and make more income. Then maybe u buy a house. *Career- If you work outside you have to buy certain clothing for the weather *a lawyer needs a lot of suits *Rising expectations- as you meet a level of expectations, you may want something better. *instead of taking your gf out for McDonalds you make take them somewhere nicer. *Self concept

Willingness to pay/advocate for it (Perceptual process)

- Boy bands (the Beatles vs. One Direction)- depends on if you like band -steak n shake vs. culvers double cheeseburger- place value on each-- so many brands but can tell by minute details which is which.

Boredom (complication)

- Need variety now and then. Maybe you go to a place you have never been and try a new flavor. *change your hairstyle *change the kind of soup you have been eating bc your bored

Self Expression (McGuire)

- need to express one's identity to others purchase and display of goods to depict who we are and what we do. - Thinking about who you're going to dress up as for Halloween - Kid dressed up in a Marlboro costume and dad is dressed in a captain outfit.

Outlet selection

-Store itself- shopping at meijer vs whole foods -Staff- affects mood, effort, commitment, knowledge and skill -Consumers- affect enjoyment time in store, items examined, purchases, satisfaction -social conditions

Sources of information

-memory- past searches, personal experiences. Your brain. -Personal- You ask other people for information—family, friends, teachers, etc -Independent- consumer groups and government agencies -Marketing- - Salespeople, advertising, promotion—commercials, campaigns *Golf commentator GEICO commercial *Doctor commercial GEICO -Experiential- When you're actually trying a product. Free samples, to try it. Trying different hot sauces to order them because you know how they taste

Step 1: Need Recognition

-need state: when one's desired state of affairs differs from ones actual state of affairs -Functional benefits- benefits of products that include convenience, reliability, nutrition, durability, and energy efficiency. -emotional benefits- more subjective and may be perceived differently from one consumer to the next EX: It's sunday night. You're hungry (internal physiological stimuli) and there is nothing in the fridge. You will order food (statement of need).

Physical data/stimuli (Perceptual process)

Ads, packaging, youtube, video, price tag, display Ex. stumptown coffee roasters (comes in bags), not in glass jars how you would perceive the brand

Positive, associative (Reference groups)

Aspire to be an Illini fan. Stuff you do want to belong to.

Interpretation (Perceptual process)

Attach meaning, value (good/bad, better/worse, different/same)

Semantic differential

Bipolar words connected by a scale -horrible to amazing - you can use what ever numbering you want

Consideration set (Alternative Evaluation)

Brands accepted for further consideration

Multiple Choice MR

Check any alternative you like, circle the tv program you watch

Multiple choice SR

Check only one alternative

Adjective checklist

Checks adjectives that describe -"how do you feel about college?"

McGuire needs and motives

Consistency, Cognitive dissonance, Categorize, Attribute causation, Cues, Independence, Novelty, Assertion, Self-Expression

Simplification

Consumer strategy of simplifying tasks. Past experience helps solve problems efficiently -routines -we know to buy certain products because we always buy that product -Tide- he has bought the free and gentle since his kids were little because of rashes and they still use it today and dont look around for new products -Go to Coffee Royall on Wednesdays because of its 2 dollar lattes -dont go to the store and look at every cereal box bc you know you like lucky charms -Unofficial- you go to certain places because thats what you normally do -When you go to a restaurant often you already know what to order.

Gatekeeper (Family Roles)

Control the flow of information. -Not having a college visit on unofficial because it will leave a bad impression of the school on the parents. -Saying there is nothing available in Colorado so that you can go somewhere warm, so you gate keep that information. -University housing video- they make everything look perfect so that you live in university housing.

Environmental

Culture-we love our entertainment Technology-wearable tech Media- Instagram Regulation-nutrition labels Economy-Wall st. Politics-If mayor doesn't get reelected

Ego-Defense (McGuire)

Defend identity - Insecure customers purchase well-known brands because fear being labeled socially incorrect. - Buying Levi jeans because they are safe—no fashion boundaries pushed. Not putting yourself out there.

Self Actualization (maslow)

Desire for Self-fulfillment, want to be all you can be. -Purchasing brands to help you accomplish things -taking a trip to experience yourself -Taking classes for fun -If youre going on a ski trip, you need the clothes and accessories to go along with the activity -Where are you going to shop for your equipment?

Consistency (McGuire)

Desire for things to be consistent with each other -You would expect high end brands to have high end products -Country music fan- someone who likes country stuff -you create expectations for people based on how they look and who they are

Negative, dissociative (Reference groups)

Don't want to be a Packer fan. Stuff you don't want to belong to.

Maturation (complication)

Get older, change, evolve as a person and a consumer. As you age maybe you go to college and that brings on new purchase habits. Maybe you buy new Illinois gear because you go to school then.

Informal (Reference groups)

Golf buddies, going to grab a burger

Organization (Perceptual process)

Identify, classify, categorize -match stimuli you're sensing with similar object categories in memory -Garrets popcorn -Evoque- Haven't had a lot of experiences with it so your mind works around it and categorizes into general inferences.

Ordinal Scale

Indicate relative positions, order (not distance), #'s have meaning, rank order is common Ex. Rank order 1, 2, 3 for Papa Del's, Lou Malnatti's, and Giordano's preference

Linear Numeric

Items judged on a single dimension, pick a number on a scale to show the importance of something

Formal (Reference groups)

Joining an actual program/club etc. - With organizations with Illinois

Classical Conditioning

Learn "association" between stimuli. (The Budweiser Clydesdale horses-- We know the horses are for Buds even if they don't say Budweiser) - They dont have the logo anywhere but we know the association because it is known to us -Geico commercial with pillsbury Dough boy

Belongingness (maslow)

Love, friendship, affiliation, group acceptance -Buy Hollister and other brands to stay in the popular clothing group -State farm commercial- Jerry needs a hug

Competitive category

Market share: The portion of a market controlled by a particular company or product. - sales for a company divided by industry sales (dont need to know this just helps visually) - Oreos: what brands have what cookie share--> Oreos sales/cookie sales

Customer/consumer category

Market- size, growth, potential-- twitter has grown so much Lifestyle- Attitudes, interests, and opinions-- People who ride bikes to work in a city Buying processes- How, when, where, why do you buy things Brand loyalty- you only buy certain brands for certain products Segment-target market Use

Modeling

Model your behavior after peoples. Someone that you're modeling your behavior after may recommend a product, and you may purchase it because of that. -We trust people on YouTube and online for product recommendations -Make purchase decisions based on recommendations -We look for social cues to know what products to buy to fit in. *Golf coach-Mike small *Sororities/fraternities *friends

Cues (McGuire)

Need for observable cues or symbols enabling us to infer what we feel and know -who to model behavior after

Basic decision making process****

Need recognition, info search, alternative evaluation, purchase decision, post-purchase behavior

Attribute Causation (McGuire)

Need to determine who or what causes things to happen to us -People track your media and based off what you search they might think you need something -Advice -Who are you going to seek advice from

Primary Research

New data gathered to help solve problem at hand

Purchase Decision

Now that the consumer has evaluated the different solutions and products available for respond to his need, he will be able to choose the product or brand that seems most appropriate to his needs. Then proceed to the actual purchase itself. EX: After evaluating the possibilities, you've decided to choose the well-known pizza delivery chain. In addition, a new episode of your favorite TV show is broadcasted tonight on TV.

Step 3: Alternative evaluation

Once the information collected, the consumer will be able to evaluate the different alternatives that offer to him, evaluate the most suitable to his needs and choose the one he think it's best for him. EX:You have a bad opinion of the Indian restaurant since you've been sick the last time (inept set). The pizzeria is both recommended by your friend and also happens to be a well-known brand (positive perception - evoked set). As for the sushi restaurant, it got good reviews on Tripadvisor (positive perception - evoked set).

Step 2: Information search

Once the need is identified, it's time for the consumer to seek information about possible solutions to the problem. EX: You already have ordered from the Indian restaurant on your street last month (internal information). A friend recommended a pizzeria in your neighborhood (external information from environment). And this morning you've found a flyer for a sushi restaurant in your mailbox (external information from advertising).

Post-Purchase behavior

Once the product is purchased and used, the consumer will evaluate the adequacy with his original needs (those who caused the buying behavior). And whether he has made ​​the right choice in buying this product or not. EX: The pizza was good (positive review). But you know there was too many calories and you regret a little bit (mixed feelings about yourself). The next time you will choose the sushi restaurant. There is less fat in sushi than pizza (next purchase behavior)!

Forced irrelevance of current situation (complication)

Options no longer available *sometimes things go out of business, or your location changes, or other factors happen that lead you to have to change your solution.

Inert set (Alternative Evaluation)

Person is indifferent about these brands -Wont make a trip to go get donuts at Casey's but will when going to Royals donuts

Safety (maslow)

Physical safety, security, stability, familiar surroundings -kidde smoke alarm -vivint. alarm system -Scooby doo, creeper, commercial- state farm -All state headband commercial- guy running and other guy crashes into a lamp post

Maslow

Physiological, safety, belongingness, esteem, self actualization

Influencer (Family Roles)

Point of views. -"not going to a ski resort because I don't want to go anywhere cold." -Influencing destination decision because you have a point of view.

Information Provider (Family Roles)

Provide information to other members. -What movie are we going to see? We make purchase decisions based on the information of different activities/different places/etc. -Going to Europe and deciding what you want to do. -Research hotels, airfare, activities, etc.

Nominal Scale

Put something in a category - classify people, events or groups

External Sources/Data

Research suppliers not part of a firm/ data collected outside an organization

Instrumental conditioning

Respond/behave in certain ways because of consequences (rewards or punishments) -Dancing cheerios commercial *Healthy starts young, Healthy hearts stay young* (if you eat cheerios your heart will be healthy) -We buy certain brands because we anticipate rewards and we avoid certain products if we anticipate a punishment

Heuristics

Rules of thumb

Virtual (Reference groups)

Social media references (Yelp, Facebook, etc)

Esteem (maslow)

Status, Self-respect, Prestige -Portray who we are in our clothing Burberry -Mercedes-Benz commercial- make a deal with me, you can have the car and everything that goes with it. (fame goes along with having a Mercedes)

Stimulus

Stereotype- nature of information you get from environment - how people dress--> assume their job - Guy with eyepatch is an accountant-> glass blower

Factors that shape perception

Stimulus, context, customer characteristics

Sensation (Perceptual process)

Taste, smell, see, hear, touch - Ex. If coffee is in a paper bag, you can smell the beans - Pizza/Portillos- sense of packaging, people touch/feel clothes before buying them

Cognitive Dissonance (McGuire)

Tendency of people to worry about wisdom of purchases after they're made (buyers remorse) -making a huge purchase and questioning it after you already bought it -Honda minivan commercial-built in vacuum

Aspirational (Reference groups)

The group that you want to be a part of, Illinois orchestra. -Expensive wine club, want to watch Irish dance team perform

Utilitarian

Things you need for every day use--> Microwaves, detergents, minivans, utilities

Inept set (Alternative Evaluation)

Unacceptable brands

Hedonistic Consumption

Use products for sake of enjoyment. Sensory pleasure- wanting to feel things, hot tubs, face masks, sauna Aesthetic pleasure-Art pleasure, Natural beauty, Going to Italy to see the Arc Emotional experience- going to Disney Land and ride the rides, adrenaline rush. Go to sporting events to feel the emotion. Giving roses for valentines day bc it symbolizes love Fun/enjoyment- playing games & sports, watching tv, hanging out with friends. Purchase brands that impact us by giving us fun and enjoyment

Novelty (McGuire)

Variety seeking behavior -Cruise -vacation

Cognitive conditioning

Watching/reading/experiencing stimuli -Reasoning, abstract thinking, decision making, problem solving

problem/need recognition

What want differs from what have, desired state differs from actual size (Out of stock, dissatisfaction, new needs and wants, related products, marketer induced)

Operational

What you're doing with your marketing mix. How you are controlling things to influence customers to buy your products

Ratio-characteristics scale

Will get you serious data - true zero point of origin, ration values, actual amount of variable. -Ex. What is your age in years, income (dollars per year)

Attention

You choose to attend some stimuli and not others

Comprehension

You interpret information your own way based on your background and FOE. - right wing republicans-perceive governmental issues/ads differently -Macs vs. PC

Complication

You may try something different to complicate your life. 3 factors: *Boredom *Maturation *Forced irrelevance of current situation

Retention

You remember and forget

Evoked set (Alternative Evaluation)

a group of relevant brands that a consumer is favorably familiar with when they are thinking about making a purchase -completely acceptable -Top of mind awareness

Member (Reference groups)

a member of a wine club. Be in a sorority or frat. -Church to attend services, Irish dance team, unofficial st. paddy's day community

Purchasing agent or buyer (Family Roles)

actually purchases product or service. -Parents heavily contribute to paying for college. -Mom goes to the store and I tell her what I need, but she does the purchasing.

Customer characteristics

baggage affects what we see, how we see it, and what we expect to see

Modeling (McGuire)

base own behavior on that of others and conform to norms. - If you're a cubs fan you will probably wear cubs apparel to the game.

Repositioning (Alternative Evaluation)

changing place brand occupies in consumer's mind relative to competitive offering - Brands can be anything you want them to be - Re-imagine what "import" means in the car world—Luxury cars Chrysler commercial- windy city - Big ideas, sharp minds, Chrysler commercial. - we are born makers, we made this. - Chrysler is imported from the US. - What a certain spice of old can transform into- Old spice—targeted toward sailor image. - Completely transformed the image of old spice. Before it was made for sailors to smell like the fresh sea. Now it is the most powerful male smell. - "wake up to the freshness of the open sea" old spice commercial. - Where does regular end and extreme begin—old spice commercial. - Hair falls of head to get number of girl—Old Spice commercial - Hair gets girl a baby in machine—old spice commercial

User (Family Roles)

consume or use product.

Alternative Evaluation

consumers compare and contrast the brands and products in their evoked set.

Internal search

customer draws information from previous experience and knowledge

Internal sources

department/data collected within an organization

Disposer (Family Roles)

dispose of product/discontinue using service. -Leftover food from Lou's—who takes it home? -How you dispose of trash

Assertion (McGuire)

engage in activities that increase self esteem -sky diving

Biases in perceptual process

exposure, attention, comprehension, retention

Physiological (maslow)

food, water, sleep, sex *choose brands based on what you need *bear grocery commercial- you are how you sleep- tempurpedic matress

Interval Scale

give you lots of information about brands- awareness, knowledge, liking, satisfaction, performance, quality -Ex. Audi, sport luxury cars. Rate these cars performance 1-10 from crappy to fantastic - can also compare what people think about other brands in product category "hot flavored salty snacks"

Independence (McGuire)

individuality and uniqueness characteristic of american culture -do your own thing, be your own person

External search

involves visiting websites to examine alternatives, asking friends and relatives, etc.

Secondary Group (Reference groups)

larger group of people that you share a relation or similar goal as. -AAA, knight of Columbus, BMW owners club (either very involved or just a member)

Categorize (McGuire)

need to categorize and organize information and experiences in some meaningful and manageable way -Vehicles categorized as sedance, coupes, SUV's, light, trucks, etc. -Helps consumers narrow down choices

Affiliation (McGuire)

need to develop mutually helpful and satisfying relationships with others. Want to have friends

Positioning (Alternative Evaluation)

place brand occupies in consumer mind relative to competitor brands. - 5 words to describe Illinois- research, athletics, social, tradition, BIG10 - We know what U of I is before we go there. We have our reasons for attending the school.

Decision maker or decider (Family Roles)

power to determine whether to purchase something or not. -Not going to have a minivan because we don't like them.

Reinforcement (McGuire)

reinforced or rewarded for doing certain thing with products -Look at how big my diamond is -wedding ring-public brand

Consideration set

set of brands consumer will consider for purchase

Context

setting in which information is received - Reuben sandwich at Kat'z--> Iconic setting from when Harry Met Sally -Vs Carnegie's--> Waiters in black and white uniforms -Experience at fancy apple store in NY vs. buying a case at best buy/Walmart

Initiator (Family Roles)

starts the ball rolling. Someone initiates saying that we should go on spring break. Someone triggers an idea.

Secondary research

stuff that has already been collected (libraries, government, research organizations, internet sources)

Primary group (Reference groups)

the people you are more intimate and close with; people you see every day. People at your wedding party. Greek houses

Exposure

you choose whether or not to make yourself available to information