Study Guide: Chapters 5, 6, 7, and 8
risk and compliance
Stoner: found that when selecting between alternatives, groups and individuals make different decisions, which is known as the risky shift phenomenon -individuals make riskier decisions when they were in groups than they did when alone group polarization phenomenon: when groups make decisions that are less risky than those made by individuals as decisions become more extreme, they might also become less accurate why group polarization? -social comparison theory: when people learn that their position is the same as everyone else in the group, they shift their position so that it is more extreme (but everyone tends to do this and the polarization occurs) -persuasive arguments theory: the position with the best and largest number of arguments supporting it is the position toward which members shift -both theories plus intrapersonal processes
firmographics
(also known as emporographics or feature based segmentation) is the business community's answer to demographic segmentation. It is commonly used in business-to-business markets (it's estimated that 81% of B2B marketers use this technique). Under this approach the target market is segmented based on features such as company size (either in terms of revenue or number of employees), industry sector or location (country and/or region) a company tags each of its active custormers on four axes: -risk of customer cancellation of company service -risk of customer switching to a competitor -customer retention worthiness -tactics to use for retention of customer
computer-mediated conformity
Postmes, Spears and Lee: found that the same types of norms and conformity that occur in face-to-face groups evolve in computer-mediated groups as well -can be good or bad, depends on the group flaming: uninhibited and inappropriate behavior more likely because of anonymity and deindividuation social identity of deindividuation model effects: argues that the anonymity associated with computer-mediated communication fosters a decrease in your sense of self and an increase in the degree to which you identify with a group -argues that immersion in a group prompts greater conformity to the group's norms
Big Five Locator Test
The Big Five was originally derived in the 1970's by two independent research teams -- Paul Costa and Robert McCrae (at the National Institutes of Health), and Warren Norman (at the University of Michigan)/Lewis Goldberg (at the University of Oregon) -- who took slightly different routes at arriving at the same results: most human personality traits can be boiled down to five broad dimensions of personality, regardless of language or culture. In scientific circles, the Big Five is now the most widely accepted and used model of personality what are the five? -openness -conscientiousness -extraversion -agreeableness -neuroticism/negative emotionality My scale: -openness: (88 percentile-high scorers tend to be original, creative, curious, complex) -conscientiousness: (86 percentile-high scorers tend to be reliable, well-organized, self-disciplined, careful) -extraversion: (47 percentile-I am neither particularly social or reserved) -agreeableness: (69 percentile-I tend to consider the feelings of others; high scorers tend to be good-natured, sympathetic, forgiving, and courteous) -negative emotionality (48 percentile-I am not particularly nervous, nor calm)
Segmentation: statistical methods
The choice of an appropriate statistical method for the segmentation, depends on a number of factors including, the broad approach (a-priori or post-hoc), the availability of data, time constraints, the marketer's skill level and resources. Common statistical approaches and techniques used in segmentation analysis include: -Clustering algorithms - overlapping, non-overlapping and fuzzy methods; e.g. K-means or other Cluster analysis -Conjoint analysis -Ensemble approaches - such as random forests -Chi-square automatic interaction detection - a type of decision-tree -Factor analysis or principal components analysis -Latent Class Analysis - a generic term for a class of methods that attempt to detect underlying clusters based on observed patterns of association -Logistic regression -Multidimensional scaling and canonical analysis -Mixture models - e.g., EM estimation algorithm, finite-mixture models -Model based segmentation using simultaneous and structural equation modeling-e.g. LISREL -Other algorithms such as artificial neural networks
artifacts
the clothes and makeup we wear, the cars we drive, the furniture we own, and other physical objects we have around us -cues such as clothing, grooming, cosmetics, hair length, tattooing, and body piercing influence judgments about credibility, attractiveness, and whether or not to hire someone -power and status might be communicated through the size and location of a person's office artifacts can lead to persuasion -although meta-analyses indicated that fancy suits, uniforms, and high-status clothing are related to higher rates of compliance, it might not always be necessary for persuasion
Whys of conformity
the group locomotion hypothesis: suggests that members of a group are motivated to achieve the group's goals social comparison theory: you determine things (attractiveness, tall, weird, good at something, etc.) by comparing yourself to others, usually others who are similar to you and doing so can lead to conformity consistency (or balance) theory: it is uncomfortable to disagree with a group that you like and find attractive epistemological weighting hypothesis: suggests that we gain knowledge in two ways: personally, through trial and error and perceptual observation; and socially, through observations and communication with others -suggests that the degree to which a person conforms depends on how much weight is given to personal and social knowledge the hedonistic hypothesis: we conform to avoid pain and gain pleasure
chronemics
the study of how time is used to communicate -time not only affects perceptions of people but it also can be used as a persuasive ploy scarcity (pg. 178) psychological reactance: pg. 179
social proof
the tendency to view behaviors as more appropriate or correct when a lot of other people are engaging in such behaviors -can be a handy shortcut for deciding how to behave, but can make us vulnerable to the persuasive attempts of others -the success of viral marketing depends on this principle (relying on social proof or word of mouth) -has the power to influence more than buying behavior -may be more effective in some cultures than others; and is more effective in collectivistic cultures group buying: companies encourage individual customers to make purchases through buying groups, which receive a discounted groupt rate
haptics
touch -has been found to increase the number of people who volunteered to score papers, sign petitions, complete questionnaires, return money, accept invitations, provide phone numbers, and help someone pick up items that had been dropped -common way is handshaking -the use of touch for persuasion is tricky since it is so ambiguous if you like touching things, you may be high in the need for touch -instrumental NFTs -autotelic NFTs (pg. 176)
psychological states and traits
trait: a characteristic of a person presumed to be relatively stable across situations state: varies from situation to situation self-esteem: -people with low self-esteem more susceptible to persuasion? Research does not support this -research indicates that people with moderately high self-esteem are easier to persuade than people with either high or low self-esteem anxiety: -research suggests the relationship between anxiety and persuadability is not clear -be sure to include specific recommendations for avoiding the harms, along with reassurances that if they follow the reccommendations, everything will be okay *preference for consistency*: (PFC) -people are generally motivated to be consistent with their attitudes and behavior -high PFC: value and strive to be consistent, are more susceptible to the effects of cognitive dissonance -low PFC: have a preference for change spontaneity, and unpredictability *self-monitoring*: -low self-monitor: tend to be less sensitive than others to social cues, individualistic, and honestly express your thoughts and feelings -high self-monitor: tend to be very sensitive to social cues, pay close attention to what's considered appropriate, good at adapting to different audiences; are influenced by situations that yield social benefits or enhance their image; more influenced by image-based advertising
issue involvement
two types of ego involvement: *value-relevant involvement*: is linked to enduring values embedded in a person's self-concept -inhibits persuasion *outcome-relevant involvement*: issue involvement, has to do with a person's current goals or outcomes -along with the elaboration likelihood model, causes people to pay closer attention to arguments in persuasive messages
intelligence: dumb and dumber
a review of research by Rhodes and Wood indicated that -less intelligent people are easier to persuade than people with a lot of smarts
age
age: -children tend to be especially vulnerable to persuasion -the assistance lure: asking the child for help -the authority lure: posing as a person in authority -the affection/love lure: promising love and affection to the child and wanting to spend time alone with them -the bribery lure: never take candy from strangers -the ego/fame lure: lured by modeling jobs or beauty contests -the emergency lure: claiming an emergency and they were sent to gather the child -the fun and games lure: turning tickling, wrestling and other games into intimate contact -the magic and rituals lure: abuse disguised as magic, sorcery, or satanism -the pornography lure: using pornography to destroy inhibitions -the hero lure: dressing as Santa, Big Bird, or other characters -the jobs lure: advertising high paying jobs to children -two factors seem to decrease children's vulnerability to advertising: adult influence and getting older life stages hypothesis: a curvilinear relationship between age and persuadability; between youthful and elderly people, middle-aged people are less persuadable because they tend to occupy high-power positions in society and they are more resolute in their beliefs and decision making
gender differences
audience perceptions allow men to be perceived as more successful in their persuasion than women reinforcement expectancy theory: -a doctor tries to persuade a patient to do something. If the message is inappropriate, the patient rejects it, and if is it judged appropriate, the patient follows the message -male doctors can increase compliance by using either positive or negative strategies -female doctors can increase compliance only through positive strategies -early research stated women were more easily persuaded than men (Chaiken) -then researchers abandoned general gender effects and instead tried to explain when gender differences could be expected -cross-sex effect: people are more easily influenced by members of the opposite sex than be members of the same sex -there is no simple model that links 'gender' or 'sex' to influenceability -persuadability related to goals, plans, resources, and beliefs
Susan Etlinger: Big Data
fears of a trivial, captive audience with irrelevance and concealed truth move from counting things to making meaning of them; audio, text, video, visual--it all requires humans and context facts can be stupid and stubborn and can be vulnerable to misuse humans create meaning and we have a responsibility focusing on critical thinking skills because it gives us context for big data we need to teach ourselves how to find biases and "after which, therefore because of which" let's use our powers for good
right-wing authoritarianism scale
from 1946, revised in 1981 Following World War II there was a significant amount of interest in what was termed the "authoritarian personality". Psychologists wanted to understand the psychologies of fascist regimes and their followers. This line of research produced the California F-scale (F for fascist) in 1947. The Right-wing Authoritarianism Scale was developed by Bob Altemeyer in 1981 as a revision of the F-scale that improved its statistical properties.
communicator characteristics and conformity
gender: -Bond and Smith: females are more likely to conform than males peer-suasion: -McCoy: found that more than two-thirds of teenagers felt substantial peer pressure to have sex, drink, and take drugs -Gordon: found that peer pressure is the most important factor in determining whether teens begin smoking -Royte: not fitting in can lead to depression, the number-one risk factor for teen suicide, which is why peer pressure can be so strong Personality: -McGill, Johnson, and Bantel: found that managers with high cognitive complexity ten d to perform best in turbulent environments -Burger: found that people high in the desire to control events in their lives react negatively to group pressure; high self-monitors are more likely to conform -Rose, Shoham, Kahle, and Batra: found that people who are high in the need for affiliation and group identification conform more Culture: -Hofstede: identified four different dimensions of values along which any culture can be placed (power distance, uncertainty avoidance, masculinity-femininity, and individualism-collectivism) -people from cultures that score high on power distance value hierarchy and obedience to authority, whereas those who score low on power distance prefer equality and participative decision making -people from some cultures avoid uncertainty and have little tolerance for ambiguity, whereas people from other cultures are more at ease with the unknown -some cultures can be characterized as "masculine" because they value competition, strength, assertiveness, and achievement, whereas others can be characterized as "feminine" because they value cooperation, affection, intuition, and nurturance -individualistic cultures value personal goals and self-autonomy, collectivistic cultures emphasize the importance of group goals and harmony; individualistic cultures are less conforming
deindividuation
getting lost in the crowd and doing things you never would have done by yourself: extreme followers said to occur when being in a group causes people to become less aware of themselves and less concerned with how others will evaluate them deindividuation can lead to violence and theft, especially when anoymous larger crowds produce more individuation how to stop deindividuation? -get people to look inside, and reflect on their personal views of what is right and wrong two reasons why it works: -public self-awareness: how we view ourselves as social objects and our concerns about such things -private self-awareness: refers to our focus on hidden aspects of ourselves such as our thoughts, feelings, and perceptions; deindividuation increased when private self-awareness is decreased
identification and conformity
identification occurs when people are united in substance (when they share attitudes, activities, ideas, possessions, and so forth) reference group: a group that has the power to influence us through the process of identification -we tend to dress the way the reference group dresses, think the way they think, and act the way they act ethnocentrism: belief that one's culture is the standard by which all others should be evaluated, when too much identification can have negative consequences groupthink: occurs when the members in a group are so concerned with achieving consensus and getting along with each other that they don't disagree when they should -can lead to hatred, discrimination, and violence toward members of another culture strong culture: exist when employees identify so much with their organization that they conform to the organization's values and actions -can have difficulty communicating with people outside the organization
the direct effects model of immediacy
immediacy: describes actions that communicate warmth,closeness, friendliness, and involvement with other people direct effects model of immediacy: warm, involving, immediate behaviors lead to increased persuasion; but awareness of other factors may be necessary to sort out the sometimes complex relationship between nonverbal behaviors and persuasion
ethnicity, culture: me and we perspectives
individualism: (U.S.) tend to value independence and the goals of the individual over the goals of the collective -prefer more direct strategies and individually controlled sanctions -empowerment: asking, not telling people what to do to build up their self esteem collectivism: tend to value harmony, concern for others, and the goals of the group over the goals of the individual -prefer indirect strategies and strategies with group-controlled sanctions -anshi: hinting, preserves harmony, is more respectful, and seeks to save another person's face -yi shen zuo ze:setting an example by one's own action -tou qi suo hao: agreeinng to do something another person loves before asking a favor -confianza: asking intermediaries who have closer relationships with persuadees to deliver influence messages for them
PRIZM (Potential Ranking Index for Zip Marketing)
is a comprehensive and scientific marketing research tool designed to find commonality among the 300 million people and 166 million households in America and better understand their lifestyle choices and media habits; it enables us to build a research-based, highly-targeted, and cost-efficient marketing plan developed in 1978 by Jonathon Robbin, who pioneered "geodemographics" and in started Claritas Corp. to build a cluster system of U.S. neighborhoods for marketing applications clusters: -The PRIZM system categorizes U.S. consumers into 14 distinct social groups, 11 distinct life-stage groups, and 66 demographically and behaviorally distinct types or "segments," to help marketers discern those consumers' likes, dislikes, lifestyles and purchase behaviors PRIZM NE (New Evolution) is an update to the original PRIZM model that featured 62 segments. Data collection from: -census bureau -US bureau of labor statistics -National Center for Health Statistics -U.S. Postal Service -Intelliquest -Gallup -Synovate -it cross-references 70 public and opt-in databases -allows a downshift from geo-demographic to the household level segmentation list: https://en.wikipedia.org/wiki/Claritas_Prizm segment details: https://segmentationsolutions.nielsen.com/mybestsegments/Default.jsp?ID=30&menuOption=segmentdetails&pageName=Segment%Details
market segmentation
is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics -Wendell R. Smith is generally credited with being the first to introduce the concept of market segmentation into the marketing literature in 1956 with the publication of his article, "Product Differentiation and Market Segmentation as Alternative Marketing Strategies. -The overall aim of segmentation is to identify high yield segments - that is, those segments that are likely to be the most profitable or that have growth potential - so that these can be selected for special attention (i.e. become target markets). -Many marketers use the S-T-P approach; Segmentation→ Targeting → Positioning to provide the framework for marketing planning objectives. That is, a market is segmented, one or more segments are selected for targeting, and products or services are positioned in a way that resonates with the selected target market or markets. -Segmentation comprises identifying the market to be segmented; identification, selection, and application of bases to be used in that segmentation; and development of profiles. -Targeting comprises an evaluation of each segment's attractiveness and selection of the segments to be targeted. -Positioning comprises identification of optimal position and development of the marketing program. -in order to achieve competitive advantage and superior performance, firms should: "(1) identify segments of industry demand, (2) target specific segments of demand, and (3) develop specific 'marketing mixes' for each targeted market segment.
nonverbal influence on persuasion
it's not what a person says, it's how the person says it that's important nonverbal communication: how we say things through the use of gestures, body movements, touch, spatial behavior, appearance, eye contact -occur simultaneously, and how we interpret one behavior can affect our interpretations of other behaviors Burgoon: nonverbal communication plays an important role in the process of social influence for several reasons -we can use nonverbal behavior to create certain impressions of ourselves -people can establish intimate relationships through nonverbal behaviors -can heighten or distract attention from persuasive messages that are likely to reinforce learning -a person can be reinforced to imitate a model's behavior -can be used to signal a person's epectation and elicit behavior that conforms to those expectations impression management theory: suggests that people control their behaviors--particularly nonverbal behaviors--in order to create desired impressions of themselves -Seiter: argued that the theory should be expanded to include the ways in which we strategically attempt to control impressions made of others; maintained that sometimes our attempts to to appear honest and desirable are undermined by others such as in a political debate
analyzing and adapting to audiences
know who you are talking to and adapt accordingly adapt a message so it coincides with the receiver's frame of reference know as much as possible about them so you can appeal to their needs and wants, while attempting to avoid offending them knowing about the situation can be useful in preparing to persuade someone micromarketing or market segmentation: -using zip codes to categorize consumers -involves breaking a market down to definable, manageable segments and then tailoring your efforts to just one or two ways to be more influential: -you can measure or make decent guesses about people's attitudes -learn the values of a culture and you will have a general idea of what your audience will like/dislike -use universal needs remember the importance of audience states and traits don't forget about audience demographics
conformity and influence
norms: are expectations held by a group of people about what behaviors or opinions are right or wrong, good or bad, acceptable or unacceptable, appropriate or unappropriate -once understood, we feel pressure to conform to them explicit norms: are written or spoken openly implicit: not so openly stated Asch study: -under group pressure, 75% of the subjects gave the wrong answer in at least one of the trials -25% remained fairly independent -10% agreed with the group on almost every trial -thus, it is probably true that some individuals are more prone to conformity than others
social judgment theory
on any topic, there are a range of possible opinions that a person can hold -latitude of acceptance: the positions you find tolerable -latitude of noncommitment: contains positions you find neutral or ambivalent -latitude of rejection: contains positions that a person would reject -our most preferred position is our anchor -people are ego involved when an issue has personal significance to them and their sense of self; they become strongly committed to their stand on the issue and are more likely to reject other positions -it is difficult to persuade someone to accept a position too far away from that anchor *contrast effect*: when a message falls too far away from a person's anchor position, and the person perceives the message to be farther away from the anchor than it really is -more likely in ego-involved people than who are not because their latitude of rejection is so large and their latitude of acceptance is so narrow *assimilation effect*: when a message that falls within a person's latitude of acceptance is perceived to be closer to the anchor position than it really is -persuasion is not a one shot deal, and anchor positions need to be moved gradually
the power of labeling
our names can influence how people see us and how they and we behave people respond favorably to hearing their names the power of labels extends far beyond the names that people are given Sapir-Whorf hypothesis: the language we use determines the way we understand the world naming a drug: has to be short (no more than 3 syllables), unique, easy to pronounce, easy to remember, and must convey the essence of what the drug does
paralinguistics
pg. 185 the study of vocal stimuli aside from spoker words to includes such elements as pitch, rate, pauses, volume, tone of voice, silences, laughs, screams, sighs, and so forth -the way a person speaks affects how they are perceived as well as their ability to persuade -must consider other variables
communicator characteristics and persuadability
some people are more persuadable than others, but the searchfor a single underlying trait or characteristic that makes people persuadable has not been successful the characteristics of people in a persuasive interaction cannot be ignored -all communicators are unique in terms of gender, age, personality, and background and these are important to understanding the nature of social influence communicator characteristics: limited to one person
social impact theory (SIT): social influence model (SIM):
*social impact theory * (SIT): -argues that the first person you add to a group has the most influence, while each additional person added has less influence *social influence model* (SIM): -argues that the third and fourth people added to a group have the most impact because no minority is possible with only two people; after two or three people are added, the pressure to conform levels off informational influence: we have a desire to be right and we conform to the group because we think the group may be correct normative influence: we conform to a group to gain rewards and avoid punishments that are associated with agreement and disagreement Campbell and Fairey: -increasing the number of people in a group affects informational and normative processes differently -having an ally helps resist conforming to the group *morality as motivated resistance hypothesis*: -people with stronger moral convictions should be more resistant to majority influence than people with weaker convictions -strong convictions against torture were more likely to express opposition to torturing suspected terrorists, even when all the members of their groups expressed support for such torture minority influencing the majority: -conform, then deviate (accumulates brownie points, more favorable when you disagree) -or consistently disagree with the group (looks more confident and may get the group's attention) -pick one and stick with it; if you can convince one person to join you, more will follow
Ch. 5 videos
1. Mean Girls: -an example of self-monitoring (https://mymasonportal.gmu.edu/bbcswebdav/pid-7832879-dt-content-rid-148269123_1/courses/41006.201840/13423.201810_ImportedContent_20180108110205/Mean%20Girls.mp4) 2. authoritarian parenting style -shows authoritarianism (https://www.youtube.com/watch?v=tKtqxb5jzYU)
Chapter 7 videos
1. Seven Dirty Words This video quite cleverly describes seven words that no one used to be able to say on television. Now, you may not hear all of these words on TV, but you might hear some of them. George Carlin delivers his message through his comedy routine. We, as a culture, have assigned the meaning to them, as he tells us almost immediately. You don't really know what they are until you say them and your mother gets angry! -https://www.youtube.com/watch?v=kyBH5oNQOS0
Chapter 6 videos
1: typewriter in classroom -demonstrates what can happen when expectations held by a group of people about what behaviors or opinions are right or wrong, good or bad, acceptable or unacceptable, appropriate or inappropriate, are violated -https://www.youtube.com/watch?v=vwwWioEa6e8 2: dead poets society illustrates how easy and quickly someone can conform to a crowd, and how it is important to find your own path -https://www.youtube.com/watch?v=nJ_htuCMCqM 3: the breakfast club Each of the five characters is very purposefully from a different clique in school Each represents a different set of social norms and expectations, both from their peers and from their parents. Each lunch is scrutinized with verbal comments and non-verbal reactions and each of the four must justify their choices to make themselves, their lunches, and their choices see "normal." -https://www.youtube.com/watch?v=u3mupIlFIYQ 4: sorority hazing 10 examples of things that were done to young women pledging sororities and the sometimes deadly consequences of their involvement. -https://www.youtube.com/watch?v=dvaAfFwMlXg 5: music and cultural expectations example of conformity pressures placed on people from outside their group. Within ear range, the driver changes the music to rap/hip hop. The white man on the corner looks nervously at them and then avoids eye contact. As the car pulls away, once the car occupants are no longer within hearing distance of anyone else, they change the radio station back to the elevator music originally playing. -https://mymasonportal.gmu.edu/bbcswebdav/pid-7832871-dt-content-rid-148269083_1/xid-148269083_1 6: Drumline 2, final battle Shows group locomotion hypothesis, which is when members of a group are encouraged to participate to achieve the goals of the group. This clip shows two drumlines on the football field, where they are going to demonstrate to others (as well as themselves) the beauty of symmetry and of working together to achieve a common goal. -https://www.youtube.com/watch?v=X08K7ypWpk0 7: Cabbage Patch Craze This clip from The Today Show, circa 1983, shows the Cabbage Patch doll craze at its height. The clip explain what the dolls are, why people might want these dolls, and where they can find them. It demonstrates the lengths to which consumers will go to obtain something that society has deemed an essential part of American culture. This shows what happens when we want what we cannot have. -https://mymasonportal.gmu.edu/bbcswebdav/pid-7832871-dt-content-rid-148269084_1/xid-148269084_1
Lifton's Thought Reform
Robert Jay Lifton was one of the early psychologists to study brainwashing and mind control. He called the method used thought reform, and offered the following eight methods that are used to change people's minds. 1. Milieu control: all communication but the desired ideology cut off or strictly filtered -monasteries, cult, dungeon, etc. 2. mystical manipulation: in group has a higher purpose or state of being than the outgroup, and all things are then attributed and linked to this higher purpose. This association of symbolic events and revelations are used as evidence that the group truly is special and exclusive -includes coincides which are spun to fit 3. confession: people are encouraged to confess past sins (as defined by the group) that creates a tension between their beliefs and the bad action, exposes vulnerabilites and requires trust and strengthening of the bond between the group -the consistency principle: leads the person to fully adopt the belief that the sin is bad and to distance themselves from repeating it -exhausts people and makes them more open to suggestion 4. self-sanctification through purity people are pushed toward perfection, which is rewarded by promotion -unattainability of perfection is used to induce guilt and sin, and forces obedience to people more perfect -enforces punishment in order to become more perfect 5. aura of sacred science beliefs and regulations are seen as perfect, absolute and non-negotiable -rules followed blindly -any questioning requires atonement and punishment 6. loaded language new words are created to explain new meanings, and existing words are hijacked and given new meaning -the person who controls the words controls how people think -the meaning of the words is kept hidden from out-groups and may be given through rituals to those who are being elevated 7. doctrine over person the needs of the group are always over the needs of the individual -anything outside the group-past anything-is no longer validd 8. dispensed existence a sharp line between the in and out group, and who is inside is chosen by the group -people who leave are evil, weak, lost and to be pitied, and used as examples -people fear being cast out -all aspects are subject to scrutiny and control, there is no privacy, and no free will
marketing segmentation: identifying the market
The market for a given product or service known as the market potential or the total addressable market (TAM) -identify the size of the potential market. However, estimating the market potential can be very challenging when a product or service is totally new to the market and no historical data on which to base forecasts exists. -A basic approach is to first assess the size of the broad population, then estimate the percentage likely to use the product or service and finally to estimate the revenue potential. To estimate market size, a marketer might evaluate adoption and growth rates of comparable technologies. -Another approach is to use historical analogy. However, analogous product adoption and growth rates can provide the analyst with benchmark estimates, and can be used to cross validate other methods that might be used to forecast sales or market size. -A more robust technique for estimating the market potential is known as the Bass diffusion model, the equation for which follows:[33] N(t) - N(t−1) = [p + qN(t−1)/m] × [m - N(t−1)] The major challenge with the Bass model is estimating the parameters for p and q. However, the Bass model has been so widely used in empirical studies that the values of p and q for more than 50 consumer and industrial categories have been determined and are widely published in tables.[34] The average value for p is 0.037 and for q is 0.327.
primary and secondary target markets
The primary market is the target market selected as the main focus of marketing activities. The secondary target market is likely to be a segment that is not as large as the primary market, but has growth potential. Alternatively, the secondary target group might consist of a small number of purchasers that account for a relatively high proportion of sales volume perhaps due to purchase value or purchase frequency. In terms of evaluating markets, three core considerations are essential: -Segment size and growth -Segment structural attractiveness -Company objectives and resources.
5 examples of survey demographic questions
age: What is your age? Under 12 years old 12-17 years old 18-24 years old 25-34 years old 35-44 years old 45-54 years old 55-64 years old 65-74 years old 75 years or older ethnicity: Please specify your ethnicity White Hispanic or Latino Black or African American Native American or American Indian Asian / Pacific Islander Other Education: What is the highest degree or level of school you have completed? No schooling completed Nursery school to 8th grade Some high school, no diploma High school graduate, diploma or the equivalent (for example: GED) Some college credit, no degree Trade/technical/vocational training Associate degree Bachelor's degree Master's degree Professional degree Doctorate degree household composition: Marital Status: What is your marital status? Single, never married Married or domestic partnership Widowed Divorced Separated professional or employment status: Are you currently...? Employed for wages Self-employed Out of work and looking for work Out of work but not currently looking for work A homemaker A student Military Retired Unable to work -other demographic questions may include religion; household income; number of children in a household; or geographic location. Because some demographic questions are sensitive, always give the respondent the option to refuse to complete a question with an answer option of 'prefer not to answer.'
aggression
aggression can be either constructive or destructive (or both) depending on the type of aggression and how it affects a relationship verbal: -destructive -involves the tendency to attack someone by using threats, profanity, insults, and teasing, and by insulting their character, competence, background, appearance, and so forth argumentativeness: -constructive -involves the tendency to defend and refute positions on controversial issues; they approach arguments
aphorisms
are sayings, maxims, and adages that offer advice; everywhere; are persuasive because they are succinct, easily remembered, and appear to contain "truisms" Howard: conducted a study to find out when familiar phrases are influential -used the elaboration likelihood model as a theoretical base, familiar phrases would be most persuasive when people weren't motivated to dissect a message
authoritarianism
authoritarian people respect leadership and tend to follow authorities blindly -they condemn those who question and deviate from conventional norms, exhibit hostility toward out-group members, and help cause and inflame intergroup conflict -they raise children who are unaccepting of out-groups and who tend to associate with bullies -they believe that power and rigid control are acceptable, and are likely to use physical punishment dogmatism: -a more general type of authoritarianism -tend to be deferential to authorities, are close minded, have difficulty being objective, and tend to believe there is only one right way to do things dogmatic and authoritarian people were easier to persuade (Preiss and Gayle) -the rigid beliefs of people with such traits might interfere with the way they scrutinize messages, thereby resulting in greater agreement with a message social vigilantism: -social vigilantes think their beliefs are superior to others' beliefs -try to impress their beliefs onto others, counterargue more, and are more resistant to persuasion
physical appearance
beauty sells physical attractiveness is persuasive in contexts other than advertising -if you want to appear more "hot" it helps to have attractive friends because of an assimilation effect that occurs -attractive people are judged to be happier, more intelligent, friendlier, stronger, and kinder and are thought to have better personalities, better jobs, and greater marital competence halo effect: pg. 184 body shape: pg. 184 -mesomorph, ectomorph, and endomorph facial appearance: pg. 185 hair: pg. 185 height: pg. 185
language and persuasion
because we associate meanings with words, words have the power to influence us words are the primary means of persuasion that affect our perceptions, attitudes, beliefs, and emotions but they also create reality words are subjective and effective persuaders are aware of this and attempt to adapt their messages accordingly symbol: something that represents something else; are arbitrary; are conventionalized and the meaning has to be agreed on connotative meaning: refers to the thoughts and emotions associated with a word denotative meaning: a word's direct, explicit dictionary meaning ultimate terms: words or phrases that are highly revered, widely accepted, and carry special power in a culture; their ability to persuade is not stable and connotations may change over time -god terms: carry the greatest blessing in a culture and demand sacrifice or obedience -devil terms: associated with the absolutely abhorrent and disgusting -charismatic terms: have a power that is mysteriously given, eg. freedom and democracy
cognitive complexity and need for cognition
constructivism: people attempt to make sense of their world by using constructs like fun/boring, intelligent/stupid, superficial/disclosive constructs: are perceptual categories that we use when evaluating everything from professors, to textbooks, to music, to arguments (fat/thin, popular/unpopular, strong/weak) -they see things differently depending on which constructs you use -everyone has a unique sets of constructs, and some people use more constructs than others cognitively complex: people who use a large number of different and abstract constructs that are well integrated -may be more willing to tolerate messages that are inconsistent with their cognitions -enjoy effortful thinking, and have high need for cognition, are viewed as more effective persuaders who generate more valid arguments for their views -pay close attention to messages cognitively simple: people who use less constructs
marketing segmentation criticisms
criticisms: -that it is no better than mass marketing at building brands -that in competitive markets, segments rarely exhibit major differences in the way they use brands -that it fails to identify sufficiently narrow clusters -geographic/demographic segmentation is overly descriptive and lacks sufficient insights into the motivations necessary to drive communications strategy -difficulties with market dynamics, notably the instability of segments over time and structural change which leads to segment creep and membership migration as individuals move from one segment to another Market segmentation has many critics. But in spite of its limitations, market segmentation remains one of the enduring concepts in marketing and continues to be widely used in practice. One American study, for example, suggested that almost 60 percent of senior executives had used market segmentation in the past two years
demographic variables
demographics: include age, gender, ethnicity, and intelligence While it is true that social media and the 24/7 news cycle has blurred lines as to who uses what and when/how, it is also true that segmentation of the population is still an important tool in understanding who one's audience is. It is also important to recognize that demographics alone are no longer the best way to reach an audience. A combination of methods must be used. B2B: business to business; segment the market into different types of businesses or countries. B2C: business to consumer, segment the market into demographic segments, lifestyle segments, behavioral segments or any other meaningful segment.
euphemisms and doublespeak
doublespeak: ambiguous or evasive language euphemisms: inoffensive terms substituted for offensive ones -people might use euphemisms in order to be regarded as tasteful and sensitive, thereby saving their own "face" -people might use euphemisms because such words are less threatening and more respectful, therefore saving the "face" of the audience members LIAR: the Lexicon of Inconspicuously Ambiguous Recommendations, by Robert Thornton
indoctrination
hazing: -though brutal, some argue that it builds cohesiveness by encouraging bonding among new recruits -research suggests we value a group more if our indoctrination into the group is severe and intense and we are likely to conform to it cults: -Whitsett and Kent: estimate that as many as 5 million Americans are or have been involved with cultic groups, and surprisingly, the majority are of above-average intelligence -the softening-up stage: vulnerable recruits are befriended and taken to meetings, showered with love and attention known as love-bombing, then squired by leaders, deprived of sleep, and confused -the compliance stage: experiment with behaviors requested by the cult -internalization: the recruits begin to consider some of the demands and beliefs of the cult to be more acceptable -the consolidation stage: recruits become loyal to the cult and demonstrate their allegiance with costly behaviors -research suggest that cults create climates that are difficult and painful to leave -the harder it is to get into a group, the more likely we are to comply once we're in it
history of segmented marketing
history: -Fragmentation (pre 1880s): The economy was characterised by small regional suppliers who sold goods on a local or regional basis -Unification or Mass Marketing (1880s-1920s): As transportation systems improved, the economy became unified. Standardised, branded goods were distributed at a national level. Manufacturers tended to insist on strict standardisation in order to achieve scale economies with a view to penetrating markets in the early stages of a product's life cycle. e.g. the Model T Ford -Segmentation (1920s-1980s): As market size increased, manufacturers were able to produce different models pitched at different quality points to meet the needs of various demographic and psychographic market segments. This is the era of market differentiation based on demographic, socio-economic and lifestyle factors. -Hyper-segmentation (1980s+): a shift towards the definition of ever more narrow market segments. Technological advancements, especially in the area of digital communications, allow marketers to communicate with individual consumers or very small groups. This is sometimes known as one-to-one marketing. -Contemporary market segmentation emerged in the twentieth century as marketers responded to two pressing issues. Demographic and purchasing data were available for groups but rarely for individuals and secondly, advertising and distribution channels were available for groups, but rarely for single consumers
proxemics
how we use space to communication distance: -geographically close to another person facilitates attraction, which fosters persuasion -personal space: refers to what might be considered an invisible bubble that surrounds us -people tend to stand clsoer to people they like -closer distances may not encourage compliance -expectancy violations theory: when people violate those expectations of how close to get, we experience arousal and may become distracted and how we react depends on several factors
maslow's hierarchy of needs
human needs are hierarchical, with the most basic biological needs at the lowest level and more complex needs at the top -physiological (food/water) -safety (stability/security) -belonging (acceptance/love) -esteem (feeling important/unique) -self-actualization (the need to grow, create, and understand) before people are motivated to satisfy higher-level needs, their lower-level needs must be met
bases for segmenting markets
marketers are looking for a means of achieving internal homogeneity (similarity within the segments), and external heterogeneity (differences between segments); they are searching for a process that minimises differences between members of a segment and maximises differences between each segment. In reality, marketers can segment the market using any base or variable provided that it is identifiable, substantial, responsive, actionable and stable. -Identifiability refers to the extent to which managers can identify or recognise distinct groups within the marketplace -Substantiality refers to the extent to which a segment or group of customers represents a sufficient size to be profitable. This could mean sufficiently large in number of people or in purchasing power -Accessibility refers to the extent to which marketers can reach the targeted segments with promotional or distribution efforts -Responsiveness refers to the extent to which consumers in a defined segment will respond to marketing offers targeted at them -Actionable - segments are said to be actionable when they provide guidance for marketing decisions. However, the most common bases for segmenting consumer markets include: geographics, demographics, psychographics and behavior. Marketers normally select a single base for the segmentation analysis, although, some bases can be combined into a single segmentation with care. -Demographic: Quantifiable population characteristics. (e.g. age, gender, income, education, socio-economic status, family size or situation). [also, DINK, GLAM, GUPPY, MUPPY, preppy, SITKOM, Tween, WASP, YUPPY] -Geographic: Physical location or region (e.g. country, state, region, city, suburb, postcode). also, country, region, population density, city or town size, and climactic zone -Geo-demographic or geoclusters: Combination of geographic & demographic variables to make richer, more detailed profiles -Psychographics: Lifestyle, social or personality characteristics. (typically includes basic demographic descriptors) [purchase/usage occasion, benefit-sought, user status, usage rate/purchase frequency, loyalty status, buyer readiness, attitude to product or service, adopter status] -Behavioural: Purchasing, consumption or usage behaviour. (e.g. Needs-based, benefit-sought, usage occasion, purchase frequency, customer loyalty, buyer readiness). -Contextual and situational: The same consumer changes in their attractiveness to marketers based on context and situation. This is particularly used in digital targeting via programmatic bidding approaches
Blakely: Social Media and the End of Gender
most advertising companies use rigid segmentation strategies for their audiences, don't take into account people over the age of 54 anymore the categories mean even less now, because the internet means we can escape some of the boundaries and can connect with people in other groups on our common interests taste communities: not around age or gender, based on likes and shared interests now woman are driving the social media revolution in every age category will the media landscape be a feminist landscape? No--but they may hire more women and they will kill the cheesy stereotypes that go with old demographic bases -will be data driven looking at how people represent themselves can tell us more about the world
Maslow's Hierarchy of Needs Questionnaire
physiological needs: 20% you appear to have everything you need to survive physically. Maslow speculates that without satisfying basic needs (food, shelter, health) one cannot achieve higher levels of development. This generally makes sense, but the history of starving artists and successful artists who tanked after they became wealthy is important to note. -safety needs: 17% you appear to have a very safe environment. Maslow speculates that without enviromental stability (security, safety, consistency), you can't progress to higher levels of development. Neuroscience research would appear to support this, as higher stress contributes to higher cortisol levels, which impair memory and thinking functions. However, low stress can also lead to obesity and cardiac degeneration. The lazier and weaker you become, the more stressful the most minimal tasks and stimuli become. -love needs: 50% you appear to be somewhat content with the quality of your social connections. Maslow speculates that discontentment in your connections with others stalls development. Whether the resolution of love needs comes with good relationships and/or learning to be more internally fulfilled is a question Maslow does not answer. But history would suggest many advanced minds had few relationships so this stage would seem to be more about resolving internal perceptions than as a call for measuring/achieving happiness by quality of external relationships. -esteem needs: 67% you appear to have a low level of skill competence. Maslow speculates that until you develop a good skill set (talent, trade, expertise that you excel at) you will be unable to develop further as an individual (much less reliably support yourself financially). This could mean being a good musician, painter, doctor, carpenter, etc.. On some level this stage also requires getting over the need to be appreciated for that skill, internally and/or externally. Even if you develop a skill, you still might be hung up on the need to have other people validate you or you might internally doubt yourself. Then again, you might not be appreciated, or appreciate yourself because your skills are still too undeveloped. -self-actualization: 60% you appear to have an average level of individual development. Maslow speculates that individual development is the pinnacle of existence, this means pursuing a career/life that really fits who you are and want to be internally (not based on external and societal expectations). The self actualized person is free from superficial concerns and is internally honest.
powerless language
powerless language creates the perception of powerlessness and prevents people from being persuasive -the type of powerless language a person uses may influence how he or she is perceived -the type of language that is most effective may depend on who is using it -Blankenship and Craig: found that when low credible sources used tag questions, the sources were less persuasive regardless of whether their messages contained strong or weak arguments -Carli: found that sources' and receivers' sex affects the persuasiveness of language. females were persuasive with men when they used powerless forms of speech but persuasive with females when using powerful speech hesitations: signal uncertainty or anxiety; "Well, I uh, you know, um, would like to borrow a dollar" hedges: qualify the utterance in which they occur; "I guess I sort of like you and kind of want to know you" intensifiers: fortify the utterance; "I really believe that and agree with you very much" polite forms: indicate deference and subordination; "excuse me, if you wouldn't mind too much, I'd appreciate it if you'd please shut the door. thank you" tag questions: lessens the force of a declarative sentence; "this is fun, don't you think? much more fun than yesterday, isn't it?" disclaimers: utterances offered before a statement that anticipate doubts, signal a problem, or ask for understanding; "i know this is a really dumb question, but...?" deictic phrases: phrases indicating something outside the speaker's vicinity; "that man over there is the one who stole my wallet."
language intensity, vividness and offensiveness
profanity: strong connotations and commonly used; sexual profanity seen as the most offensive while excretory profanities were median and religious profanities were the least offensive -if you want to be perceived as attractive, credible, and persuasive, you should clean up your language political correctness: refers to issues of inclusive speech and advocacy of nonracist, nonageist, and nonsexist terminology vivid information: captures and holds our attention and excites our imagination because it is emotionally interesting, concrete and imagery-provoking, and proximate in a sensory, temporal, or spatial way -Guadagno, Rhoads, and Sagarin: may either help or hinder the persuasiveness of a message, depending on its relevance and when and how it is used language intensity: emotional, metaphorical, opinionated, specific, forceful, extreme, and evaluative; the quality of language which indicates the degree to which the speaker's attitude deviates from neutrality -reinforcement theory: assumes that people are motivated to avoid pain and seek pleasure; if the listener generally agrees with the speaker, when the speaker throws some forceful language at the listener, the listener is even more motivated to agree -language expectancy theory: we have expectations about what types of language are normal to use when trying to persuade other people; how violations are perceived depends on who is using the language -Burgoon and Siegel: highly credible sources are granted a "wider bandwidth" of acceptable communication than those with low credibility -information processing theory: to be persuaded, you must first attend to and comprehend a persuasive message -Hamilton and Stewart: language intensity affects this process by making a source's position on an issue seem more extreme compared to your own position -communication accommodation theory: when we communicate with others we adjust our style of speaking to their style in order to gain approval and increase communication efficiency; speakers who "matched" the style of the audience were also perceived as more credible
kinesics
refers to the study of eye contact, facial expressions, gestures, and body movements and posture eyes -eye contact has been found to convey dominance, persuasiveness, aggressiveness, and credibility -Murphy: found that people who looked more at their interaction partners while speaking and listening were perceived as more intelligent than those who do not -Segrin: found that in all but one study, gazing at listeners produced more compliance than averting gaze -Gueguen and Jacob: found that people, especially females, were less likely to comply when persuaders quicklky averted their glance than when they maintained eye contact face -smiling has probably been studied the most -mimicry: mimicking other people's nonverbal cues emblems: nonverbal behaviors, usually hand movements, that have precise verbal meanings illustrators: accompany speech; illustrate, emphasize, or repeat what is being said -studies indicate that the use of illustrators increases a speaker's persuasiveness self-touching behaviors (adaptors): scratching your arm, rubbing your cheek, picking your nose, stroking your hair
developing the marketing program
requires a deep knowledge of key market segment's purchasing habits, their preferred retail outlet, their media habits and their price sensitivity. The marketing program for each brand or product should be based on the understanding of the target market (or target markets) revealed in the market profile. The technique known as perceptual mapping is often used to understand consumers' mental representations of brands within a given category. Traditionally two variables (often, but not necessarily, price and quality) are used to construct the map. There are a number of different approaches to positioning:[73] Against a competitor Within a category According to product benefit According to product attribute For usage occasion Along price lines e.g. a luxury brand or premium brand For a user Cultural symbols e.g. Australia's Easter Bilby (as a culturally appropriate alternative to the Easter Bunny).
social loafing
research suggests that when working in groups, people may not try as hard as they do when working alone -can have disastrous effects: the larger the group, the less likely people are to lend a hand -people who see themselves as uniquely superior to others are most likely to loaf when working collectively on an easy task -people who are open to new experiences, conscientious, agreeable, and high in the need for cognition are less likely to loaf than their counterparts Karau and Williams: the reduction in motivation and effort when individuals work collectively compared with when they work individually or coactively collective effort model: argues that we tend to get lazy if we don't expect our efforts to lead to personally valued outcomes or if we don't think our effort will be instrumental in obtaining those outcomes free ride effect: suggests that when they can get away with it, people try to benefit from the efforts of others sucker effect: occurs when people suspect that others may be taking a free ride diligent isolates: are people who increase their efforts and willingly work alone in an effort to rescue group projects -but their presence can encourage social loafing in other members how to reduce it? -provide people with personal feedback -monitor individual performance -assign meaningful tasks and make each unique -enhance the cohesiveness -make people feel like their contributions to the task are necessary and not irrelevant -limit the number in the group social compensation: helps people maintain the belief that they are unique and reap possible rewards if their group does well social facillitation: the tendency to perform better when other people are around on simple or well-rehearsed tasks -with adding people, can impair performance on complex or unfamiliar tasks
Gunelius: demographic, psychographic, and behaviorial segmentation
segmentation hasn't been fully defined; demographic segmentation isn't dead, but it's extremely limited in what it can deliver. 80% of marketers were using behavioral targeting techniques (76% by geographic, and 75% by demographic) Instead of super-serving the relevant ads to the most active consumers, the impressions are spread out equally among viewers who happen to coexist in the same demographic. It's an incredibly wasteful and inefficient way to do business. The 'typical consumer' is no longer typical. Today's consumers are multichannel, active, engaged, and in control. Using behavioral segmentation along with traditional demographic segmentation in your market research surveys yields more useful data that tells a more complete story than demographics alone can provide.
marketing segmentation: strategy
strategies: -undifferentiated approach: the marketer ignores segmentation and develops a product that meets the needs of the largest number of buyers; zero segments -Focus strategy: Niche marketing: focus efforts on a small, tightly defined target market; one segment -differentiated approach: the firm targets one or more market segments, and develops separate offers for each; two or more segments -hypersegmentation: One-to-one marketing: customise the offer for each individual customer; thousands of segments A number of factors are likely to affect a company's segmentation strategy: -Company resources: When resources are restricted, a concentrated strategy may be more effective. -Product variability: For highly uniform products (such as sugar or steel) an undifferentiated marketing may be more appropriate. For products that can be differentiated, (such as cars) then either a differentiated or concentrated approach is indicated. -Product life cycle: For new products, one version may be used at the launch stage, but this may be expanded to a more segmented approach over time. As more competitors enter the market, it may be necessary to differentiate. -Market characteristics: When all buyers have similar tastes, or are unwilling to pay a premium for different quality, then undifferentiated marketing is indicated. -Competitive activity: When competitors apply differentiated or concentrated market segmentation, using undifferentiated marketing may prove to be fatal. A company should consider whether it can use a different market segmentation approach.
PRIZM applications and benefits
the BIG idea: figure out who your clusters are -step 1: identify your current customer(s) through the PRIZM methodology -step 2: learn the detailed info available about their lifestyle choices, media habits, consumer patterns, demographics, and psychographics -step 3: market to those who are just like them, skip over those who aren't So what does this mean to me? -know more about your customers than you thought you ever would -know where your customers live PRIZM applications -current marketing strategies -better targeting of positioning statements -better targeting of marketing messages -better medium delivery strategy -new market penetration -new location decisions -new product launches benefits: -reduces the overall cost of research -deepens the understanding of current customers (MRI information, media listening and viewing habits, and purchasing patterns and preferences) -provides customized mapping to where your known target audience lives (states, DMA, cities, zip codes, neighborhoods, and even individual houses) -increases marketing ROI through better targeting of marketing resources to only those most likely to buy and skip over the rest
ostracism
the act of excluding and ignoring others many school shootings were due to ostracism it can affect behavior in other ways -people may behave in more socially acceptable ways -may render ostracized people easy marks for persuaders and con artists
