Consumer Behavior Final
Focus
(direction of attention) and intensity (amount of attention) are key to understanding attention.
abstract. words
(such as democracy or equality) are more difficult to represent visually (eg: Brand names: WD-40, Nuprin, Prius, etc.
concrete words
(such as dog or tree) can be visualized rather easily (eg: Brand names: Spic 'n Span, Easy Off, Head and Shoulders, Jaguar, etc.)
Marketer Dominated
- Advertising - Salespeople - Infomercials - Websites - Point-of-sales materials
cohort
A cohort is any group of individuals linked as a group in some way. ex:" group of people born in the same time period.
The use of attention-getting stimuli carries some risks including:
A stimulus might gain so much attention that the rest of the message is ignored. stimulus may interfere with information processing if it requires too many cognitive resources. If consumers perceive the stimulus as manipulative, it can reduce advertising effectiveness.
Opinion
A view or judgement formed about something, not necessarily based one fact or knowledge
VI. Importance of Customer Satisfaction D. Satisfaction Lowers Consumers' Price Sensitivity
As customers become less satisfied with the product, a company is less able to increase its price or have competitors lower their prices without losing customers.
C. Women and Time
As roles outside the home increase, women have less leisure time. Marketers have developed time-saving products to appeal to women, including convenience foods. Marketers have also developed products to help women enjoy the leisure time they do have.
Influence of Gender
As the gender gap narrows, decisions are increasingly made jointly Due to waning gender identification of products, marketers are transitioning gender-dependent products to a dual-gender positioning
B. Use permission marketing
Asking consumers for their permission to send them product-related materials. Much more effective.
What does Changing Geography of Demand do?
Assigns the attributes of small areas - usually neighborhoods - to the consumers who live within them and, based on this assignment, divides the consumer marketplace into meaningful segments that are locatable and reachable. The discipline leverages spatial and mathematical patterns in how people live and shop to help marketers make inferences about consumer behavior.
Group 5 Lack of money for interests or opportunities, Lack of time (time consuming goods) are indirectly correlated with social class according to Hollingshead Index of Social Position A. True B. False
B. False
Group 5 Which of the following is NOT an objective measurement of social class? A. Income B. Education C. Individual perception D. Occupation E. None of the above
C. Individual perception
Career Orientation
Career or "just-a-job" orientation. Reach segments though different media.
More ways children affect household consumer behavior
Children also make their own purchases with family money or with their own. Children like to shop for candy, toys, clothing, school supplies, and other personal use items. Retailers study ways to adapt specific departments to these young, but significant, consumers.
How is Cognitive age measured?
Cognitive age is measured in terms of how people feel and act, express interests, and perceive their looks.
When consumers pay attention to ads, they may experience:
Cognitive response Affective response
Group 5 Why is Social Class important to understanding Consumer Behavior? A. Helps to identify needs B. Product research patterns C. Price Sensitivity D. When and where products or services are purchased E. All of the above
E. All of the above
Types of sensory memory
Echoic memory — Hearing Iconic memory — Seeing Olfactory memory — Smell
Nonfamily households include:
Elderly persons living with nonfamily members Persons of the same/opposite sex sharing living quarters Friends living together Same-sex couples Average family size = 3.1 people Average household size = 2.6 people
Need Recognition is made up of
Environmental influences Individual differences
V. Post-Consumption Evaluations
Evaluation of choice alternatives is a major part of Pre- Purchase phase of decision making .... but vital evaluations also occur following consumption. Consumers experience satisfaction or dissatisfaction. J.D. Power is synonymous with measurement of satisfaction in the world of marketing.The J.D. Power award is often used by firms in advertising.
Selective Exposure
Even though advertisers may get their message out, exposure may still not occur because consumers sometimes avoid exposure. Occurs when people do something other than watch television during commercial breaks or fail to click onto banner ads on the Internet. Selective exposure reduces the size of audience being reached.
Consumer Expectations
Expectations are beliefs about the future. Consumers' willingness to spend is influenced by beliefs about their financial future.
Search: Information Processing (5)
Exposure Attention Comprehension Acceptance Retention
Types of Decision Processes (6)
Extended Problem Solving (EPS): Limited Problem Solving (LPS): Routine Problem Solving: Habitual Decision Making Impulse Buying Variety Seeking
How Is the Product Consumed?
How is the product prepared? Is it consumed alone or with other products? Is it used as intended or have consumers invented a new use?
Mature Singles
In the U.S., 61 percent of the singles market is made up of women, with a median age of 68 years Older women living single are often widows; older men living single are usually divorced or were never married Marketers have targeted the mature singles market with travel, financial services, entertainment, social activities
What are the Individual roles in family purchases?
Initiator/gatekeeper Influencer user Buyer Decider Family members commonly play multiple roles in the family (eg: influencer, buyer & user).
What are the Individual roles in family purchases?
Initiator/gatekeeper Influencer- individual whose opinions are sought concerning criteria of purchase and which products or brands are most likely to fit those criteria. Decider- person with the financial authority or power to choose how the family's money will be spent and on which products and brands. Buyer- person who acts as the purchasing agent by visiting the store, calling suppliers, writing checks, bringing products into the home and so on. User
Retrieval
Learning is only one part of remembering. The other part of remembering is - getting it back out.
H. Make it more intense
Loud sounds and bright colors are more likely to attract attention. Volume of commercials is usually louder than the regular programming.
What is The Importance of Families and Households on Consumer Behavior?
Many products are purchased by a family unit. Individual's buying decisions may be heavily influenced by other family members. How families make purchase decisions depends on the roles of the various members in the purchase and consumption, as well as the influence of buying decisions. Some products are bought by individuals and used by other family members, others are bought by individuals for themselves, while others are bought jointly, etc.
Price Perceptions Influence Opinion Formation
Nine-ending prices Reference Pricing Designed to encourage consumers to form a favorable opinion about the reasonableness of the price.
Overexposure
One solution to wearout involves varying advertisement execution. Overexposure extends even beyond advertising and sometimes to the product.
A. Connect with consumers' needs
People are attentive to stimuli perceived as relevant to their needs (eg: grocery shopping, opening emails, etc). Gaining consumers' attention might require reminding them of their needs.
Weber's law:
Perception of change depends on more than simply the absolute amount of change.
E. Use isolation
Place only a few stimuli in an otherwise barren perceptual field.
How 'Rewarding' or 'Punishing' Was the Experience?
Positive reinforcement: Negative reinforcement Punishment
Extended Problem Solving (EPS):
Problem solving of a higher degree of complexity that influences consumers actions Often occurs with expensive items or can be fueled by doubts and fears Importance in making the "right choice" All seven consumer decision making stages are often activated Dissatisfaction is often vocal and more critically
Limited Problem Solving (LPS):
Problem solving of a lower degree of complexity that influences consumers' actions Consumers don't have motivation, time, or resources to engage in EPS Little search and evaluation before purchase Need recognition leads to buying action; extensive search and evaluation often avoided as the purchase is not of great importance
VI. Importance of Customer Satisfaction A. It Influences Repeat Buying
The likelihood that customers will remain loyal depends on their level of satisfaction. However, customer satisfaction does not guarantee loyalty. Cheaper to retain a customer than recruit a new one. Xerox corp. found that customers "totally satisfied" were 6 times more likely to repurchase than "satisfied" customers.
Identifying different purchaser-consumer relationships:
Who's buying for whom? Who are the principal characters? What's the plot for the purchase? Who wants what when? What can we assume?
Brand Distinctiveness
Why should consumer want to buy your brand instead of the competitor's? The desirability of products having something unique to offer to their consumers is also known as the Unique Selling Proposition (USP).
Online Advertising
advertising content delivered in different forms such as static, pop-up, or floaters.
Utilitarian advertising appeals
aim to influence consumers' opinions about the advertised product's ability to perform its intended function.
Household
all persons, both related and unrelated, who occupy a housing unit
E-mail Marketing
although a relatively inexpensive way to deliver content, problems include "bounce back" and getting the recipient to open the e-mail.
Pennies-a-day strategy
decomposes a product's price into its cost on a daily basis (eg: magazine subscriptions, car payments, club memberships. etc.)
FLC affects......
demand for many products. FLC helps explain how families change over time and can identify core target markets when modified with market data.
Unaided (free) recal
does not contain any retrieval cues
Loss-frame messages
emphasize potential costs incurred by ignoring a message's recommendation. The loss-frame is usually more effective as losses loom larger than gains (loss aversion). Framing can also shape opinions of the product's affordability by describing the product's total cost as smaller costs over time.
Gain-frame messages
emphasize what is attained by following a message's recommendation.
Family of procreation
family established by marriage. (Some families are extending these definitions to include pets.)
Family of orientation
family into which one is born.
Population momentum
future growth of any population will be influenced by its present age distribution
Cognitive learning
getting information into memory. Occurs when info processed in short-term memory is stored in long-term memory.
How is the ability to buy measured?
income and wealth.
Self-referencing
involves relating a stimulus to one's own self and experiences.
Marketers use demographic analysis as....
market segment descriptors and in trend analysis.
Income
money from wages and salaries as well as interest and welfare payments.
Two sets of identical food products one packaged in a McDonald's wrapper/container the other packaged in a generic wrapper/container Which did the children preferred
most chose McDonalds packaging
Joint (syncratic)
most decisions made with nearly equal involvement by both spouses.
Sensory memory
part of mental capacity used when initially analyzing a stimulus detected by one of our five senses
Advertising may focus on activating consumers' memory of....
past consumption experience
Market analysis requires information about (3 things)
people with needs, ability to buy, willingness to buy
User
person or persons who use the product.
Dual Coding
proposes that information can be stored in both semantic and visual forms. Having multiple representations increases the number of possible mental pathways that can be traveled when trying to remember.
Aided (cued) recall
provides cues to help someone remember.
Cognitive dissonance
questioning the purchase decision (post-purchase regret) Usually, the higher the price, the higher the level of cognitive dissonance
Consumer Behavior in Latin America What are the 3 major advantages for us firms?
rapid population growth, moderately high incomes, and close proximity
Changing Geography of Demand What is Geodemography?
refers to where people live, how they earn and spend their money, and other socioeconomic factors. Answer the marketing questions: Who are my customers? Where do they live? and How can I best reach them?
Spending intentions
reflect how much money consumers think they will spend ex: Will you spend at least $1,000 on Christmas gifts this year? Nochance 1 2 3 4 5 6 7 Idefinitelywill
Attitude towards the advertisement (Aad)
represents the global evaluation of an advertisement.
Purchase restrictions
restriction is interpreted as a signal of the deal's popularity and value, increasing its attractiveness
Internal search
retrieving know-ledge from memory or genetic tendencies
Demographic analysis provides information for __________ ___________
social policy
Evaluative criteria
standards and specifications used to compare different products and brands
Peripheral cues
stimuli devoid of product-relevant information. ex: A study was conducted with people who received one of 2 different ads: 1)a very attractive picture of a tropical beach at sunset or 2)an identical ad, except that the picture was replaced with one of ugly iguanas perceived as unattractive. The attractive picture caused a more favorable product opinion than the unattractive picture, but only when thinking about the product's merits was minimal.
retrieval cues
stimuli that activate information in memory relevant to the to-be-remembered information
Ii
the 'ideal' performance on attribute i
classical conditioning
the meaning, feelings, and liking associated with one object can bee transferred to another object by. simply pairing the 2 objects together.
Activation happens when a stimulus meets or exceeds the lower threshold:
the minimum amount of stimulus intensity necessary for sensation to occur.
Birthrate
the number of live births each year per 1,000 people
Blogs
the online journal community, traditionally free from corporate influence, is being infiltrated by companies.
C. Mental Representations
the particular manner in which information is stored in long-term memory. Stimuli may be stored in same form in which they appear, or transformed (eg: the price of a dress may be remembered as $200 or as 'expensive'). Dual coding Associative network
Instant Messaging
very popular among different consumer segments due to the interactive nature or messages.
Habituation:
when a stimulus becomes so familiar/ordinary that it loses its attention-getting ability.
Positive reinforcement
when consumer receives positive outcome from product usage.
Satisfaction
when consumers' expectations are matched by perceived performance
Negative reinforcement
when consumption helps person avoid negative outcome.
Punishment
when consumption leads to negative outcome.
Dissatisfaction
when experiences and performance fall short of expectations
Nine-ending prices
when the last digit of the price is the number 9, it signals a lower price or is mentally rounded down. Given a price of $9.99, it tends to be viewed as $9.00 instead of $10.00.
Nuclear family
immediate group of father, mother, and child(ren) living together.
UK's First Facial Recognition Campaign 'Because I am a Girl'1
Different content according to gender Pointing the lack of choices that still exist in developing nations for girls
Face Recognition Advertising
Identify the age and gender of the potential customer and customize advertising Quantify effectiveness of the marketing campaign measuring demographics and attention level Design special offers for recognized customers
Face Recognition Advertising Kraft. Adidas The Venetian, Las Vegas Coca Cola Israel
Kraft - Recommends macaroni recipes to busy mothers1 Adidas - Offers walking shoes to older shoppers1 The Venetian, Las Vegas - Customizes ads to the demographic2 Coca Cola Israel - Provides an app in various theme park locations to tell friends about it2
Individual Differences
- Consumer Resources - Motivation - Knowledge - Attitudes - Personality, Values, and Lifestyle
Environmental influences
- Culture - Social Class - Personal Influence - Family - Situation
Non-Marketer Dominated Stimuli
- Friends - Family - Opinion leaders - Media
What are the 4 types of attitudes?
1- Attitude towards the object (Ao) 2-Attitude towards the advertisement (Aad) 3-Attitude towards the behavior (Ab) 4-Preferences
Consumer beliefs are made up of 3 things:
1- Expeectations 2- Brand Distinctiveness 3-Inferential Beliefs
The Fishbein Model - Implications Companies want consumers to perceive their products as:
1- Possessing desirable attributes (when ei is positive, bi should be positive) 2-Not possessing undesirable attributes (when ei is negative, bi should be negative)
Psychology of color 1-______clothing can convey power. 2-____ and ______ are often associated with sexy and seductive 3-_____ clothes make people look thinner. 4-The most visible color is ______. 5-The most legible of all color combinations are _____ on yellow and ________ on white followed by ____ on white.
1- Red 2- Red &. Black 3- Black 4- Yellow 5- Black; green; red
Psychology of Color 1-___________ evokes cheerfulness. Houses with _______ trim or flower gardens sell faster. 2-____ & ________. encourage diners to eat quickly and leave. ____ also makes food more appealing and influences people to eat more. (It is no coincidence that fast food restaurants almost always use these colors.) 3-Children prefer _______. (Notice that children's toys and books often use these colors.) 4-Forest _______ and ________ appeals to the wealthiest 3 percent of Americans and often raises the perceived price of an item.
1- Yellow; yellow 2-Reds and oranges; red 3-Primary colors 4-Forest green & burrgundy
The power of association in shaping consumers' opinions is invaluable to marketers for 2 main reasons:
1-It frees companies from the constraints imposed by how well the product actually performs. 2-Simple association works without requiring consumers to undertake extensive thinking during processing.
Feelings are part of what 3 consumer experiences?
1-advertising experience 2-shopping experience 3-consumption experience
The Psychology of Color 1-Non-primary colors are more calming than________ 2-_____ is the most calming of the primary colors, followed closely by a lighter ____. 3-Test takers score higher and weight lifters lift more in ___ rooms. 4-______ text increases reading retention.
1-primary colors 2- Blue; red 3- Blue 4- Blue
b. Environmental Influences:
1. Culture 2. Social Class 3. Family 4. Personal Influence 5. Situation behaviors
c. Psychological Processes Influencing Consumer Behavior
1. Information processing 2. Learning 3. Attitude and behavior change
What. aree 2 types of Multiattribute Attitude Models?
1. The Fishbein Multiattribute Attitude Model 2. The Ideal-Point Multiattribute Attitude Model
The number of children in the U.S. is projected to increase, to __ million in 2050 (20% of popn)
80
Three primary ways of changing consumer attitudes:
A. Change 'beliefs' B. Change 'attribute importance' C. Change 'ideal points'
III. Grabbing Consumers' Attention (15 ways)
A. Connect with consumers' needs B. Use permission marketing C. Pay consumers to pay attention D. Getting attention with motion E. Use isolation F. Make the message bigger G. Colors are nice H. Make it more intense I. Location affects attention J. The surprise factor K. Distinctiveness L. The human attraction M. The entertainment factor N. Learned attention-inducing stimuli O. Find a less-cluttered environment
How Companies Can Help Consumers to Remember (8)
A. Get More Attention B. Use Reminders C. Use Retrieval Cues D. Use Repetition - again and again E. Encourage Elaboration F. Encourage Multiple Representation in Memory G. Be Consistent H. Use Easy-to-Remember Stimuli
Group 4 With metaphor analysis researchers are able to find what exactly? A. How people perceive a concept, a product, or a brand from different psychological and linguistic perspectives. B. Which metaphors are the funniest to the marketers. C. Both of the above D. None of the above
A. How people perceive a concept, a product, or a brand from different psychological and linguistic perspectives.
Group 5 By what term can we identify a consumer segment shown to favor products related to autonomy & personal success? A. Individualism B. Socialism C. Dualism D. Collectivism E. None of the Above
A. Individualism
Group 4 What is the primary benefit of ethnographic research methods? A.They provide rich details and objective insights into a subject's consumption behavior B.They give exacting detail of a subject's family history C.They tell researchers what type of person a subject is D.None of the above
A.They provide rich details and objective insights into a subject's consumption behavior
Purchase
Acquisition of the product that involves choosing a specific retailer, and in-store choices Purchase intention can change during the purchase stage—it can be influenced by factors such as: in-store promotions, discounts, salespeople, failure to find the product, or lack of financial resources
B. Use Reminders
Advertising that reminds consumers to buy a product (reminder advtg). Postcards, oil change stickers, etc. reminding consumers to make an appointment. Retrieval cues placed on packaging and at the point of purchase to enhance ad effectiveness. Free stickers (magnets) help consumers remember the company's information. Free products (promotional freebies) act as mini- billboards and build goodwill. The Internet is useful for delivering reminders and making recommendations to consumers.
Factors affecting birthrates: (FAST)
Age distribution of population, Family structure, social attitudes toward family/children, Technology
Structural variables affecting families and households:
Age of head of household Marital status Presence of children Employment status Marketers monitor these variables to predict changes in demand for specific products and categories.
Changing Ideal Points (Ii)
Altering consumers' preferences for what the 'ideal product' should look like. ex: 'Would your ideal brand of mouthwash contain no alcohol, some alcohol.....or a lot of alcohol?'
G. Be Consistent
An ad may convey the same meaning through the brand name, copy, and picture if they are presented in similar ways. A print ad for a vodka brand reads: "Smooth as ice...... Icy cold. Icy clear. Imported Icy Vodka of Iceland. Why can't everything in life be this smooth?" When the ad copy conveys the same meaning as the name and picture, brand name recall is improved. Consistency facilitates remembering.
Feelings
An affective state (e.g., current mood state) or reaction (e.g., emotions experienced during product consumption).
II.a. Need Recognition
An individual senses a difference between what he or she perceives to be the ideal versus the actual state of affairs Consumers recognize needs and seek to fulfill them, or seek a product to solve their problems Knowing consumers' needs helps firms develop products and marketing programs to reach them more effectively
opinion change
Any subsequent modification in an existing opinion
Marketing to Women
Appealing to the "mother" category Different segments exist and they look at advertising, the Internet, products, time, and brands differently Depending on career orientation, responsibilities in and out of the home, time pressures, messages, and ads need to be adapted Retailers can appeal to women with special services or extended hours
Information Processing
As a consumer is exposed to information from external search, they begin to process the stimuli
Greater levels of elaboration
At greater levels of elaboration, more links between the new information and information stored in memory are created. Greater elaboration leads to greater learning.
Types of Spousal roles in buying decisions: (4)
Autonomic Husband dominant Wife Dominant Joint (syncratic)
Group 3 The implication that an innovation should be defused to all members of a social system and should never be re-invented or rejected is_______. A. Disadoption B. Pro-innovation bias C. Individual Blame D. The rate of adoption
B. Pro-innovation bias
Group 4 What is the difference between quantitative and qualitative research? A. Quantitative research focuses on interactive processes and events while qualitative research focuses on the relationship between variables. B. Qualitative research focuses on interactive processes and events while quantitative research focuses on the relationship between variables. C. Qualitative research is neutral and doesn't concern itself with consumer opinions. D. They are the exact same type of research methods.
B. Qualitative research focuses on interactive processes and events while quantitative research focuses on the relationship between variables.
Group 3 Which adopter category is known for having a large number of opinion leaders? A.Innovators B.Early Adopters C.Early Majority D.Late Majority E.Laggards
B.Early Adopters
Multiattribute Attitude Models
Beliefs about a product's attributes or features are important because they determine the favorability of one's attitude toward the product.
Multiattribute Attitude Models are....
Beliefs about a product's attributes or features are important because they determine the favorability of one's attitude toward the product.
Inferential Beliefs
Beliefs are often inferred when product information is incomplete. Also undertaken when consumers interpret certain product attributes as signals of product quality - e.g., price-quality inferential beliefs, partially comparative pricing, etc. Consumers use information about one thing to form beliefs about something else.
Describe Millenials ('Generation Y', Echo Gen,Generation Me)
Born in the 1980s and early 1990s (26-40 year olds) with 72 million members. Projected 79 M by 2050. Greater need for peer acceptance, which often guides product and brand choice. More likely to switch brands quicker than other segments. Teens like the social aspects of shopping with friends.In 2014, the number of millennials in the US eclipsed the number of baby boomers.
Describe 'Generation Z' (Generation Wii, NetGen, Digital Natives)
Born in the mid nineties and early 2010s (6-16 year olds) with 86 million members. Greater need for financial security, very competitive, entrepreneurial and values independence more than other gens. Avid gamers and music-goers, love messaging, always on the internet, on social networks, and on mobile systems—they are truly the "Digital- ites." They tend to care about trends, but are also quick to research top issues.
How do you calculate the brand attitude score?
Brand attitude scores (Ao) are calculated by multiplying the belief scores by their corresponding evaluation score for each attribute (bi x ei).
consumer unit (CU) or minimal household unit (MHU)
Buying behavior is best described by the term
Group 3 What is the best way to introduce a disruptive, innovative product into the market? A. Create marketing campaigns showing multiple uses of the product to demonstrate versatility and user friendliness. B. Develop a salesforce to sell into various target audience segments and collect data on which responds best. C. Focus on only 1-2 applications. and concentrate efforts on perfecting the development and execution within the channels only. D. Make sure to design ads and messaging that speaks to the average American consumer first, because they are the largest. part of the demographic.
C. Focus on only 1-2 applications. and concentrate efforts on perfecting the development and execution within the channels only.
Group 3 When a product is introduced into the market as an improvement of an already existing product, it is said to be introduced in at _______ manner. A. Consumer Orientated B. Firm Orientated C. Product Oriented D.Market oriented
C. Product Oriented
Group 5 Occupation, Source of income, House type, Dwelling area are factors in tool for measurement of social status A. Hollingshead Index of Social Position B. Subjective Social Status C. Warner's Index of Status Characteristics D. None of the Above
C. Warner's Index of Status Characteristics
Group 3 In the adoption process, the more similar to each other that members of a culture are, the more likely an innovation is to spread is what factor: A.Modernity B.Relative Advantage C.Homophily D.Complexity E.None of the above
C.Homophily
Currently, which states are expected greatest gains in population? Why does it matter?
California, Texas and Florida...the move to the 'Sunbelt states'. These states are considered prime candidates for new stores compared to other states where populations may be declining.. Geographic variables affect many components of a firm's marketing strategy.
L. The human attraction
Celebrities can attract attention in ads and on packaging. Attractive people, often scantily dressed, attract attention for a variety of products and brands.
What do changes in age distribution affect?
Changes in age distribution affects the types of products and services that will be bought and consumed in the future.
Name 4 ways Demographics effect consumers?
Changing Structure of Markets, Geographic Factors, Economic Resources, Global Markets
Changing Attribute Importance (Wi)
Changing an attribute's importance is more difficult than changing a belief. How is a brand perceived relative to ideal performance? Increasing attribute importance is desirable when the competitor's brand is farther from the ideal point than your product.... and vice versa. Firms may add a new attribute (eg: the attribute 'flame broiling' is emphasized by Burger King).
How Children affect Household Consumer Behavior
Children change dramatically how the family functions, in terms of relationships, employment, and purchases. Children reduce parents' participation in the labor force, change how families spend their money and reduce the amount of time and money available for leisure. Children influence about $1.9 trillion of purchases globally each year.
Childhood Socialization
Children learn their consumer behaviors through socialization Children learn shopping behaviors from shopping with parents Co-shoppers explain to their children why they buy certain products over others, thereby, teaching their children how to shop
The Income Classes The United States population is divided into 5 classes based on the annual income of the household.
Class Income (USD) Poor and Near Poor 0-29,999 Lower Middle Class 30,000-49,999 Middle Class 50,000-99,999 Upper Middle Class 100,000-349,999 Rich 350,000 and above
Remembering consists of:
Cognitive learning and retrieval
D. Use Repetition - again and again
Companies rely on repetition (showing ads over and over again) to enhance rehearsal of the ad. This is known as increasing 'frequency' of the ad - often at the expense of 'reach'. Learning plateaus after a certain number of repetitions, and negative responses may result from seeing an ad too often. Repetition may be used within a single ad. Also, it is better to use multiple ad executions with a common theme rather than show the same ad 30 times.... to avoid 'ad wearout'
H. Use Easy-to-Remember Stimuli
Concrete words abstract words Concrete brand names will be more easily remembered than abstract brand names. Distinctive stimuli are easier to remember because they stand out and are less susceptible to interference. Distinctive brand names and products are more memorable.
Relationships between Consumer Beliefs, Feelings, Attitudes & Intentions
Consumer beliefs & Consumer Feelings >Consumer attitudes> Consumer intentions > Consumer Behavior
C. Color Influences Opinion Formation
Consumer opinions are often tied to product's color - which conveys meaning (Eg: Weinerschnitzel, iMac, bath soaps,etc). Color granules in detergents and cold capsules serve as a visual cue for products' effectiveness. Pastel colored vacuum cleaners are perceived to be lighter in weight compared to dark colored tones. Colors of foods may change expectations of flavor and also change perceived flavor (eg: vanilla pudding that is colored chocolate). Websites that use blue screens are seen as more relaxing with faster download times than those with yellow screens. Colors' use and meaning varies around the globe.
Good Moods
Consumers in a positive mood state have a greater chance of forming more favorable product opinions.
What is The Ideal-Point Multiattribute Attitude Model?
Consumers indicate where they believe a product is located on scales representing the various levels of salient attributes. Also report where 'ideal' product would fall on these attribute scales. The closer the 'actual' rating is to the 'ideal' ratings, the more favorable the attitude.
Variety Seeking
Consumers may be satisfied with the present brand but still engage in brand switching Can be triggered because bored with current brand or because of special offer
How Much Is Consumed?
Consumers may be similar in what they consume, but different in how much they consume.
VI. Importance of Customer Satisfaction B. It Shapes Word-of- Mouth & Word-of-MouseCommunication
Consumers often communicate with others about their consumption experiences. The extent to which a customer would recommend a product is a better indicator of satisfaction than even repeat buying.
Consumption:
Consumers' usage of the acquired product Understanding consumption is complex.
Post-Consumption Evaluation
Consumption is an important determinant of satisfaction Satisfaction Dissatisfaction Cognitive dissonance
Perceived Scarcity Influences Opinion Formation
Creating the perception of scarcity for a product can influence consumer behavior. Can be done by communicating how little of the product is available or suggesting that demand exceeds supply.
Group 4 What does CSAT, NPS, and CES stand for? A. Cognitive Standard Application Test, National Protection Society, and Committee of Ethical Standing B. Consumer Safety Score, Net Projection Score, and Customer Effect Score C. Consumer Appreciation Score, National Promotion Score, and Cost of Ethical Surveying D. Customer Satisfaction Score, Net Promoter Score, and Customer Effort Score
D. Customer Satisfaction Score, Net Promoter Score, and Customer Effort Score
Group 4 Brand mapping involves what process? A. Locating where a branded store is on a map and seeing where it is in relation to competitors locations. B. Understanding why a cluster of retail stores creates more opportunities for sales even amongst a smaller store within the cluster. C. Researchers looking at the buying habits of consumers and determining which brands they buy and how they moved to those brands. D. The researcher displaying several images of competing brands and then asking the participant to group the brands based on characteristics.
D. The researcher displaying several images of competing brands and then asking the participant to group the brands based on characteristics.
Why does forgetting occur?
Decay theory Inference theory Even when memory trace is strong, people forget things because not all information in long-term memory can be retrieved at one point in time. If retrieval fails, sometimes information will "pop" into our minds later.
Routine Problem Solving:
Decisions are made with a minimal amount of time and only moderate deliberation
Marriage Trends (What are they?)
Delaying age of marriage Increased incidence of cohabitation before marriage Over half of marriages end in divorce As a result, individuals shift between married and single status What are the effects on markets for household products, homes, counseling, travel, etc.?
macromarketing
Demographics is used in analyzing policy questions related to the aggregate performance of marketing in society How much food will be needed to feed the population of a country in the future? If the interest rate is increased how will it affect consumer spending? Does affluence in one nation create more or less affluence in other nations?
a. Individual Influences:
Demographics, psychographics, values, and personality Consumer resources Motivation Knowledge Attitudes
How to find results for The Ideal-Point Multiattribute Attitude Model
Developing a scale to represent various levels of each attribute verysweettaste _:_:_:_:_:_:_ verybittertaste 1234567 Provide ratings of attribute importance notatallimportant _:_:_:_:_:_:_ extremelyimportant 0123456
Benefits of Using Multiattribute Attitude Models
Diagnostic power: examine why consumers like or dislike products. Stimulus importance-performance grid with marketing implications for each cell. Can provide information for segmentation (based on importance of product attributes). Useful in new product development. (eg: Lever Brothers Co. used Multi Attribute model to successfully forecast the mkt shares of Tone moisturizing soap & Coast deodorant soap before their introduction). Guidance in identifying attitude change strategies. (How models can be used to estimate the potential payoff of each strategy in terms of how much improvement in consumers' attitudes each may provide.)
The amount of processing
Different advertising requires diff processing Info-laden ads require extensive processing, while simple ads require less processing As consumers invest varying amounts of cognitive effort in comprehending info, they will have different interpretations of advertisements
Role Behavior
Different family members will assume different roles depending on the situation and product. Children may be influencers and users for items (such as cereals and toys) while parents may be the decider and the buyer.
Shrinking Packages: Paying The Same for Less
Direct price hikes could cause consumers to buy less Large-scale studies confirm that consumers are extra-sensitive to price changes Companies are trying a different tactic: Keeping the price the same while decreasing the amount
Product Endorsers Influence Opinion Formation
Endorsers can help shape product opinions in several ways: -Association with brand may be reason enough to buy it. -Endorsers may embody meanings that companies want attached to their brands. -Endorsers may give testimonials and provide evidence of product's attributes (make-up on a model). -Endorser's trustworthiness is critical in increasing the believability of the ad claim. -Endorsers may serve as a peripheral cue.
Basic Strategies for Increasing the Amount of Consumption
Enhance the frequency of consumption. ("Murphy's Once A Week", "Got Milk", etc.). Enhance the amount consumed per consumption occasion. (Toothpaste, shampoo, etc.).
Describe 'Baby Boomers' (Muppies)
Estimated about 70 million Boomers. By midcentury, the Boomer population will dwindle to about 16 million. Good market for luxury travel, spas, health clubs, cosmetics, salons, diet plans foods, and health foods. Group represents the greatest share of the workforce, the greatest share of income, and the greatest share of voting power, and political influence.
Ethnographic Research Techniques
Ethnographic research originates from anthropology A qualitative research method Researchers immerse themselves in the everyday environment, real-life settings, lives, culture, or situation of their study Seeks to understand subject's point of view in great depth and detail Traditional approach uses 1:1 observations, cameras, notepads, etc Digital ethnographic studies can use social media and online blogs Beneficial when trying to understand complexities or idiosyncrasies of an environment with first-hand experience
Role Overload
Exists when the total demands on time and energy associated with prescribed activities of multiple roles are too great to perform roles adequately or comfortably. As women contribute more to family income, they expect a more equal division of the household responsibilities.
Who Determines What the Family Buys?
Families use products purchased by individuals. Determining what products should be bought at which retail outlet, how and when products are used, and who should buy them, is a complicated process involving a variety of roles and actors.
Feelings as part of the advertising experience
Feelings activated by the advertisement have the potential to influence attitudes formed about the featured product. (eg: Bud Lite, Miller, AFLAC, McDonald's, Coca Cola commercials, etc). Sometimes ads irritate, annoy even offend - leading to negative feelings. The program in which advertising appears can induce feelings and affect post-message attitudes.
Affective response
Feelings evoked by the ad
Changing Roles of Women
Female consumers outnumber male consumers as women tend to live longer than men do. Women represent a greater proportion in the population, improved purchasing ability, and assume greater importance in the workplace.
Female employment
Female employment is increasing around the world. Employment outside the home increases income and family buying power, but it may also increase expenditures for specific items such as child care, clothing, food away from home, and gasoline.
Demographics affect the Changing Structure of Consumer Markets. (One big question is how many people will there be?) How can you estimate/ measure this?
Fertility rate, birth rate, natural increase, population momentum
Changing Beliefs (Xi)
Firms hope that changing beliefs about products will result in more favorable product attitudes and influence what consumers buy. If beliefs are false, they need to be brought into harmony with reality. If beliefs are accurate, it may be necessary to change the product ...the actual physical attributes. Comparative advertising can hurt beliefs about a competitive brand.
Brand Intimacy Rankings How do we measure:
First, we examine the users of the brand. Next, we gauge the emotional connection with the brand by looking at factors such as Indulgence, Fulfillment, Identity, Nostalgia, Ritual, Enhancement, and the characteristics of their bond and the degree of intimacy (sharing, bonding, fusing) to arrive at Brand Intimacy Quotient
Retrieval is made up of:
Forgetting Recognition and Recall:
J.D. Power & Associates
Founded in 1968, JD Power is synonymous with the measurement of satisfaction in the world of marketing Initial focus was measurement of the satisfaction of American new car buyers Today, JDPA surveys consumers' satisfaction levels in various industries
Free Product Samples Influence Opinion Formation
Free samples can be effective when introducing a new product - as long as the product delivers! (eg: Coca Cola, AOL, Surf, Glad, etc). They encourage trial and help foster positive opinions. There is a danger in sampling being overdone by some firms. Since giving free samples is not always feasible, many companies do the next best thing—let consumers take the product home for a limited time and try it out (eg: GM 24-hr Test Drive" program, Apple computers in 1984, etc).
Message Framing Influences Opinion Formation (3 types of messages)
Gain-frame messages Loss-frame messages Pennies-a-day strategy
Generational Marketing (list the 5 generations)
Generation Z Millenials Generation X Baby Boomers Silent Generation
B. Family Celebrations and Gift Giving
Gift giving and family holidays are increasing in importance. Physical movement of large gifts have become difficult leading to increased sales of gift certificates, gift cards, and Internet gift purchases. Many retailers generate 50% of their annual sales from Christmas, etc.
Attitudes
Global evaluative judgments. Since attitudes strongly influence consumers' purchase & consumption intentions, firms are very interested in knowing about these.
K. Moods Influence Opinion Formation
Happy consumers are more likely to interpret product information in a mood congruent manner. Salespeople can use humor in their sales pitches or companies can engage potential consumers in playful activities with direct mail promotions that create good feelings and "warm up" prospects.
Rehearsal serves two functions:
Helps maintain information in short-term memory. Aids in the transfer of information from short-term memory to...long-term memory.
Head-to-head competition
High attributes of importance, Good Performance Good competitive performance
Competitive Advantage
High attributes of importance, Good Performance Poor competitive performance
Competitive Disadvantage
High attributes of importance, Poor. Performance Good competitive performance
A Neglected Opportunity is
High attributes of importance, Poor. Performance Poor competitive performance
Divestment
How consumers dispose of the packaging or product after use Options include: -Disposal -Remarketing or reselling -Recycling
Estimating the Attitudinal Impact of Alternative Changes
How expensive are the product modifications required to change attitude? Are they even possible to accomplish? How resistant to change are consumers? (eg:Can the attitude towards spam or hot dog consumption be changed easily? Can importance of 'safety' for choice of airlines be reduced?) What is the potential attitudinal payoff each change might deliver?
When does Consumption Occur?
How much time passes between purchase and consumption? What time of day is product used? When in the year or during which season is product consumed? "Wine. What are you saving it for?""Orange Juice. It isn't just for breakfast anymore"
Why should companies focus on what consumers remember about their advertising messages?
If consumers don't remember the brand, then the other things they do remember will not be linked to the brand in memory. If consumers are confused about which brand was in the ad, they might link the ad claims to another brand (eg: Energizer vs Duracell) .
Name 3 types of Influences on the Decision Process
Influence by Decision Stage Influence of Employment Influence of Gender
B. The Difficulty of Changing Consumers' Opinions
Influencing opinions at the time they are formed is easier than changing preexisting opinions, especially if they are confident opinions. Consumers' resistance to change varies from one opinion to the next and depends on whether it is based on direct or indirect experience.
Advertising Influences Opinion Formation
Informational advertising appeals Emotional advertising appeals Utilitarian advertising appeals Value-expressive advertising appeals The appropriateness of using a particular type of appeal depends on what's important to consumers as they form their product opinions. Products can be valued for both their utilitarian and value-expressive properties.
Search for Information
Internal search External search Search may be passive as consumers become more receptive to information around them, or active if they engage in search behavior Search refers to a receptivity of information that solves problems or needs rather than a search for specific products
Consumption Behaviors
Knowing how many and which consumers fall into the user and nonuser categories. Size of user market is one indicator of market attractiveness. Size of nonuser group speaks to future growth opportunities.
F. Make the message bigger
Larger ads and larger pictures within those ads tend to grab more attention than smaller ones. Products have a greater chance of being noticed as the size or amount of shelf space allotted to them increases (especially impulse items).
Purchase Restrictions Influence Opinion Formation
Limiting how much consumers can buy may lead to an increase in demand for the restricted item Consumers use the maximum number of units identified in the restriction as a starting point and adjust downwards based on other considerations (a deal's attractiveness, budget constraints, etc.) Supermarket Sales of Campbell Soup ~3 different signs were used while selling Campbell Soups: no limit per person, limit of 4/person, and limit of 12/person. Dramatic increases in sales as restrictions increased.
False Competition
Low attributes of importance, Good Performance Good competitive performance
False Advantage
Low attributes of importance, Good Performance Poor competitive performance
False Alarm
Low attributes of importance, Poor Performance Good competitive performance
Null Opportunity
Low attributes of importance, Poor Performance Poor competitive performance
C. The Danger of Changing Consumers' Opinions
Making changes can improve the opinions of some but harm the opinions of others (eg: politics, New Coke). Changes in a products' image may attract one segment but alienate another. Sacrifices are acceptable as long as the losses are more than offset by the new customers gained.
Recognition and Recall Advertising Awareness
Many companies focus on what consumers remember about their ad messages, rather than on how many remember seeing it. Companies should focus on what consumers remember about their advertising messages. -Do they remember the advertised brand? -Day after recall. (DAR) -What do they remember about the ad claims? Just because an ad is remembered need not mean that it's effective.... just because an ad is NOT remembered does not mean that it's ineffective.
Search: Sources of Information
Marketer Dominated Non Marketer Dominated
B. Influences on the Decision Process
Marketers evaluate which types of products are typically purchased by wives, husbands, or jointly. Marketers can determine which attributes of specific products to advertise to different household members. Which media will best reach the most influential family member? Which ad appeals are most effective?
resilient families
Marketers frequently refer to resilient families who emphasize time spent together through family traditions, rituals, and celebrations.
Consumer Behavior in Emerging Markets What should marketers do and consider?
Marketing programs should focus on creating brand awareness (because competitors will follow) and stimulating product trial. Marketers may have to teach consumers about products taken for granted (eg: deodorant). ex India, soon to be the largest population in the world is currently a huge marketing target. Has a middle class larger than the total market of most European countries, including France. China is already being considered an economic powerhouse with limitless marketing opportunities.
Reaching the consumer 1. Traditional media and distribution channels
Media giants have made changes to satisfy their clients' need for flexibility to deliver different messages to different sections of the country. Other tactics include product placement and advertiser sponsoring.
How are Masculine Roles changing?
Men are more involved in family functions and household activities Men may buy items traditionally purchased by women (groceries) Many men are achieving gender role transcendence and use products previously seen as "feminine"
What is the The Fishbein Multiattribute Attitude Model?
Model proposes that attitude toward an object is based on the summed set of beliefs about the object's attributes weighted by the evaluation of these attributes. Attributes can be any product or brand association.
Influence of Employment
More women working outside the home Changing spousal roles has affected how couples divide their buying responsibilities
Children As Consumers
Most parents do most of the buying. Children are often involved in family purchasing decisions. Sometimes have veto power. Children often have their own ability to buy....may offer marketers the opportunity to start a lifelong relationship.
Influence of Biased Processing
Other factors may bias or alter information processing and cause a change in how the information is interpreted. Expectations and mood states may bias information.
How Businesses Shape Consumers' Opinions (11)
Product name B. Product packaging C. Colors D. Price perceptions E. Free product samples F. Advertising G. Product endorsers H. Messageframing Perceived Scarcity Purchase Restrictions K. Mood
Product Packaging Influences Opinion Formation
Product packaging creates expectations of the product and its quality as well as how much product is inside the package. Larger packages lead consumers to believe that more product is inside ~ plastic packages perceived as holding more than glass packages ~ taller & thinner perceived as containing more than shorter & wider packages. Packages are effective at drawing attention particularly when they have an unusual shape or are taller and thinner as opposed to shorter and wider packaging. Eg: 'Absolut' Vodka, Diageo's 'Smirnoff Ice' in aluminum cans, etc.
I. Location affects attention
Products may gain more attention depending on where in the store they are located (end-of-aisle or eye-level is best... "eye level is buy level"). More attention is given to ads appearing in the front part of magazines...also to right hand pages. Upper-left corner of a page gets the most attention.
K. Distinctiveness
Products, ads, and packaging may be altered to stand-out from others using color and other elements of design.
3 Parts of Cognitive learning (REM)
Rehearsal Elaboration Mental Representation
Recognition and Recall:
Retrieval also depends on whether the information requires recall or recognition.
C. Use Retrieval Cues
Retrieval cues activate relevant product information in memory at the point of purchase. Retrieval cues also help to link the favorable feelings generated by an ad to the product. Different types of retrieval cues may be most effective depending on the language of communication 'Imagery Transfer' is used in radio advertising to evoke images in consumers' minds from TV commercials of the same brand.
The Singles Boom
Rise in number of single households in developed nations Co-habitating singles are the fastest growing segment of singles market
Advertising Influences Opinion Formation through these 5 claims (SECOS)
Search claims Experience claims Credence claims Objective claims Subjective claims
Describe 'Generation X' (Young Adults)
Segment of 41-to 55 year olds is declining but will have a slight increase with the inclusion of older Gen Y consumers. The Gen X popn is projected to outnumber the Boomers in 2028 when there will be 64.6 M Gen Xers and 63.7 M Boomers The Census Bureau projects that the Gen X population will peak at 65.8 M in 2018. Need to buy products to set up households and for young children. With many needs and greater financial restraints, they often shop at value-oriented retailers.
E. Encourage Elaboration
Self-referencing: Research supports the potential for encouraging self referencing through advertising copy
Mental capacity is comprised of:
Sensory memory Short-term memory Long-term memory
Some "Grocery Shrink" examples (snickers, mars, ketchup)
Snickers BarsSize Reduction: 11%, or 0.41 ounces. Mars also reduced the total amount of candy in each package from 3.7ounces to 3.29 ounces -- an 11% decrease -- while keeping the price the same. Heinz KetchupSize Reduction: 11%, or 4 ounces Heinz has cut the portions of several key products, including Heinz 57 sauce, which now comes in a 4-ounce smaller package with no reduction in price.
Feelings as part of the consumption experience
Some consumption experiences are liked primarily for the feelings they induce. Feelings during consumption will influence post- consumption evaluations. Consumers are more satisfied when product consumption leads to positive feelings while avoiding negative ones.
Consumer Behavior in Latin America
Some of the most attractive markets include Brazil, Venezuela, Colombia, Argentina, and Chile. Even though most consumers may not be able to afford luxury items, intermarket segmentation provides a way to identify segments that can afford many luxury items.
N. Learned attention-inducing stimuli
Some stimuli attract attention because we have learned to react to them. Ringing phones & wailing sirens are sometimes included in the background of radio & TV commercials. We react to sounds, such as doorbells & crying babies, and words such as 'free' and 'sale'.
Consumer Behavior in the Pacific Rim Provides some of the most attractive markets for growth-oriented firms including?
Southeast Asia Hong Kong, Taiwan, Singapore, Indonesia, Philippines, etc. China Most populous nation: 1.4 B consumers. China is creating a market based economy that is running a significant trade surplus with the U.S. Australia A well developed infrastructure, older population with a higher income. Has well developed advertising & marketing research system. Japan Smaller than California, but the 126 million people consume more goods & services than any other country in the world except U.S.
Name the 6 types of consumer intentions
Spending intentions Purchase intentions Repurchase intentions Shopping intentions Search intentions Consumption intentions
Influence by Decision Stage
Spouses exert different degrees of influence when passing through the different stages of the decision process. Movement from 'information search' to final decision may be minimal for many low- involvement goods and more pronounced for goods that are risky or have high involvement for the family. The decision process tends to move toward joint participation and away from autonomic behavior as a final decision nears.
J. The surprise factor
Stimuli congruent with our expectations may receive less attention than those which deviate from what is expected. Ads and packaging may feature unusual elements to gain attention.
D. Getting attention with motion
Stimuli in motion are more likely to attract consumers than stationary ones. POP displays may use moving parts and ads may use simulated motion. Increase in sales using POP displays (over stores without displays):
M. The entertainment factor
Stimuli that entertain and amuse us draw our attention, even if they happen to come in the form of an ad. eg: advertainment, webisodes, etc.
Successful retrieval depends on:
Strength of memory trace of the to-be- remembered information (eg: names of family members, SS#, home phone no. etc.) The number and strength of linkages between the to-be-remembered item and other memory nodes. (eg: a product that has a strong relationship with a celebrity spokesperson. Thinking about the celebrity will facilitate retrieval of the product & vice versa). Retrieval can be enhanced by retrieval cues
Beliefs
Subjective judgments about the relationship between two or more things.
Intentions
Subjective judgments by people about how they will behave in the future.
Helping Consumers Remember
Such memory failures in the context of product purchase and consumption translates into lost sales and profits Consumers' ability to remember also plays a role in advertising effectiveness Advertising's long-term effects may depend on consumer memory.
The Ideal-Point Multiattribute Attitude Model Soft Drink example- N-salient attributes
Sweetness of taste Degree of carbonation Number of calories Amount of real fruit juices Price
What is the Consumer Behavior in The European Union (EU)?
The EU is a market larger than the United States. 445 million people buying $6 trillion in goods & services. Low population growth makes customer retention extremely important for marketers. Products and people move across borders easily. Efficiencies include logistics, financial arrangements, and marketing economies of scale. Marketers can approach Europe as a single market, but national identity still exists among consumers.
Information Processing is made up of
The Peripheral Process of Opinion Formation The Influence of Biased Processing
G. Colors are nice
The attention-grabbing and holding power of an ad may be increased sharply with use of color. Color ads produced 42% more sales than black & white ads.
What is the Consumer Behavior in Eastern Europe?
The attractiveness of Eastern European markets lies in their similar preferences to Western consumers. Marketers have launched a myriad of successful brands there. TV viewing is the most frequent leisure time activity, making TV advertising viable. Because consumers have limited storage space & have few cars, thus 85% of Eastern Europeans shop every day for food & other items. Eg: Belarus, Russia, Romania, Ukraine, etc.
Household Characteristics
The average household size has fallen in most industrialized countries. One person households account for 25% of all households. Non-family households are projected to grow more rapidly than families over the next few decades, but the highest incomes are found among family households. Marketers are increasingly interested in single-parent households because of their rapid growth.
Unique Selling Proposition (USP)
The desirability of products having something unique to offer to their consumers
Opinion Formation
The first time we develop a belief, feeling or attitude about something
Why does it matter if the population of children increases?
The importance of children as consumers increases even more, with the higher proportion of first-child babies and dual income parents generating higher demand for quality products and services.
The Product's Name Influences Opinion Formation
The meaning derived from the name may influence the opinion formed about the product. When it conveys the wrong meaning, sales can suffer. Descriptive names and labels have also been seen to influence consumers' opinions and behaviors. Eg: Cricket manure as fertilizer for gardeners did not sell when branded "CC-84" - but sold much better when changed to "Kriket Krap".
A. Get More Attention
The more attention given to a stimulus, the greater the chances of being remembered. There are a number of ways companies can enhance consumers' attention to their messages. Pleasant ambient scents (restaurants, malls, department stores, etc.) enhance brand recall and recognition.
Global Market Analysis
The most attractive markets are countries that are growing both in population and in economic resources. -Which countries will grow the most in the future? -Which countries have the highest per capita income? Low income countries offer an advantage to firms looking to buy products from the lowest-cost source. There are pockets of consumers who are able to buy products, even in the poorest countries.
The product manager for a new brand of skin softener is considering two possible names: "Soft Skin" versus "Dickson's Skin Moisturizer".Which name would you recommend? Why?
The name "Soft Skin" seems more concrete and memorable than "Dickson's Skin Moisturizer".
Pre-purchase Evaluation of Alternatives
The process of evaluating alternatives identified from search, which leads to a product or brand selection most likely to satisfy the consumer Can use new or preexisting evaluations stored in memory Alternative can be considered on attributes that are salient or determinant
Consumption
The process of using the product or service purchased Consumption can either occur immediately or be delayed How consumers use a product affects satisfaction with product How carefully consumers use or maintain a product also determines how long it will last before another purchase is needed
Feelings as part of the shopping experience
The retail environment elicits different feelings in consumers ultimately affecting their attitudes and behaviors in the store.. Customers don't just go shopping in the store; they experience it.
Where Does Consumption Occur?
The situation in which consumption occurs can affect product choice - e.g., domestic vs imported beers sales for in-home versus on-premise consumption
The differential threshold
The smallest change in stimulus intensity that will be noticed "Just noticeable difference (jnd)". The other important factor here is that sometimes a company wants to change their product or prices without consumers noticing such changes. In such cases, companies want to stay below the differential threshold (jnd). ex: Consumers will perceive a $1.00 discount as significant if it is on a $2.00 item, but not for a $100 item.
How do you target the "Up Market?"
The superaffluent represent the top quintile of consumers in terms of income. These households often consist of two income earners who place a high value on time. They value extra services provided by some retailers. Saving money is as important as spending it for many individuals in this group. Shop discount stores, use coupons, and wait for sales. More print oriented in communications Simple ads that promote image. Credibility of source selling product. Product reviews influence this group.
Describe Silent Generation ('Young Again' Market)
These segments are expected to grow substantially. Despite advanced chronologic age, many in this segment feel, think, and buy young. Important segmentation variables for this group include health, activity level, discretionary time, engagement in society, and gender. Communicating with this segment often requires alteration of traditional messages and materials. - larger type and bright colors - newspapers and AM radio - sensitive to revealing their age
O. Find a less-cluttered environment
This includes less-cluttered advertising mediums and consumer environments.
Advertising May "Rewrite" Your Memories - or Your Consumption Experiences How?
This tested theory suggests that advertising may distort consumers' memories of their past experiences by reshaping memories. Consumers' memories are full of memories of consumption experiences both favorable and unfavorable. A recent research study indicates that it is possible to shape what is remembered by implanting false memories. Eg: meeting Bugs Bunny at Disneyland.
Cognitive response
Thoughts evoked by the ad
How do you target the "down market"?
Throughout the world, the majority of consumers are low income. Retailers such as Wal*Mart have found success by providing good products at reasonable prices. Closeout stores offer brand name products at deep discounts to at all income-level consumers. Dollar stores are one of the fastest growing retail categories. Provide good products at reasonable prices Maintaining attractive stores.Offering stylish and up-to-date products. Have friendly employees that treat customers with respect.
Impulse Buying
Unplanned, spur-of-the-moment action triggered by product display or point of sale promotion Least complex form of LPS but differs in some important ways
What are the 3 types of feelings?
Upbeat- Active Adventurous Alive Attractive Confident Creative Elated Energetic GoodHappy Pleased Negative- Angry Annoyed Bad Bored Critical Defiant Disgusted Fed-up Insulted Irritated Regretful Warm- Affectionate Calm Concerned Contemplative Emotional Hopeful KindPeaceful Pensive Touched Warm-hearted
Consumer Intentions
Useful for firms when predicting how people will act as consumers. - How much existing product should be produced to meet demand? - How much demand will there be for a new product? Firms interested in many types of consumer intentions.
Encourage Multiple Representation in Memory
Using both semantic and visual forms for consumers to store info in long-term memory is more effective than using one of these representations. If the ad copy fails to evoke imagery, then including pictures in the ad will enhance the formation of visual representations and improve retrieval. Visual representation of a brand name can increase its memorability.
Reaching the Consumer 3.Additional modes of contact
Viral marketing Mobile marketing Advergaming
How do Economic Resources effect consumer behavior?
What consumers think will happen in the future (consumer confidence) heavily influences consumption. Influences whether consumers will increase their debt or defer spending to pay off debt. Measures of consumer confidence are important in making decisions about inventory levels, staffing, or promotional budgets. Net worth influences willingness to spend but not necessarily ability to spend, because much wealth is not liquid and cannot be spent easily.
Marketers must evaluate how changes in family and household structures affect marketing strategy (Identify 3 questions marketers should consider)
What is the structure of contemporary families? How is that structure changing? How does structure affect the various stages of the consumer decision process?
Recognition and Recall Product Awareness
When consumers use internal search to form their consideration sets, they must recall brand names from memory. Brand recognition, in this instance, is not as important as brand recall. Sometimes consideration sets are formed using external search or even at the point of purchase. In this case, product awareness in the form of recognition is vital. Brand recognition focuses on more than just the name - possibly the packaging.
Opinion change and marketing
Whenever consumers have opinions that may prevent them from buying a product, businesses may strive to change consumers' opinions. The need to change consumers' product opinions often arises for mature products. Sometimes changing consumers' opinions requires improving or changing the product itself (updating its image, packaging or claims).
The Fishbein Multiattribute Attitude Model example of salient or important attributes (n):
Whether the shoe is shock absorbent for use on hard surfaces, Whether it is priced less than $50, Durability of the shoe, How comfortable the shoe is to wear, Whether the shoe is available in the desired color, Amount of arch support
Life Stages (11)
Young Singles Newly Married Couples Full Nest I, II, III Married- No Kids Older Singles Empty Nest I, II Solitary Survivor Retired Solitary Survivor
Viral marketing
a company creates something that is so compelling that consumer spontaneously passes it along to others they know. ex: Buzz for Hire ~ companies like 'BzzAgent' enlist consumers to spread information as a part of viral marketing. A 12 week campaign involving 1000 agents, runs about $95,000.
Family
a group of two or more persons related by blood, marriage, or adoption who reside together.
Wealth
a measure of a family's net worth or assets in things such as bank accounts, stocks, and a home, minus its liabilities such as home mortgage and credit card balances.
Consumption rituals:
a type of expressive, symbolic activity constructed of multiple behaviors that occur in a fixed, episodic sequence, and that tend to be repeated over time. Holiday rituals (gift giving, parties), NFL gameday rituals, etc.
Variables That Shape the Decision Process
a. Individual Influences b. Environmental Influences c. Psychological Influences
Autonomic
an equal number of decisions is made by each spouse, but each decision is individually made by one spouse or the other.
Needs
an internal state of tension caused by disequilibrium from an ideal or desired state.
Scarcity effect
an object is viewed as more desirable as its perceived scarcity increases.
The unconditioned stimulus (US) evokes...
an unconditioned response (UR). The unconditioned response (UR) can be transferred to a conditioned stimulus (CS) through simple association. Because this response arises from the conditioning, it is called the conditioned response (CR).
Permission-based e-mails
are far more likely to be successful than spam.
Subjective claims
are ones that may evoke different interpretations (eg: stylish, sleek, attractive, etc).
Informational advertising appeals
attempt to influence consumers' beliefs about the advertised product.
Value-expressive advertising appeals
attempt to influence consumers' opinions about the advertised product's ability to communicate something about those who use the product.
AP
attitude toward product
Ao
attitude toward the object
Determinant
attributes such as a car's style and finish usually determine which brand or store consumers choose
Salient
attributes such as price and reliability are important to the consumer (may be very little difference)
Xi
belief about product's actual performance on attribute i
How are Consumer Behavior in Emerging Markets characterized?
by high birth rates, high population growths and low incomes.
Shopping intentions
capture where consumers plan on making their product purchases ex: Will you shop at Wal*Mart during the next 30 days? Nochance 1 2 3 4 5 6 7 Idefinitelywill
Search claims
claims that can be validated before purchase by examining information readily available in the marketplace.
Experience claims
claims that require product consumption for verification.
Credence claims
claims whose verification is impossible or unlikely.
External search
collecting informa-tion from peers, family, and the marketplace
Advertising wearout:
describes ads that lose their effectiveness because of overexposure.
Usage volume segmentation:
dividing consumers into segments based on amount of consumption (heavy, moderate, and light users).
Match-up hypothesis
endorsers are more effective when perceived as appropriate for the product.
ei
evaluation of attribute i ex: (running shoe) How important to you is 'durability' in running shoes? veryimportant _:_:_:_:_:_:_ notveryimportant +3+2+1 0 -1 -2 -3
Consumer memory is also an important part ofnostalgia advertising appeals which:
evoke favorable memories of the past.
Beyond the consumption experience, consumers' interpretation can be affected by their......
expectations of the experience and their mood at the time of consumption.
Objective claims
focus on factual information that is not subject to individual interpretations (eg: mpg, megapixels, etc.) Objective claims are usually more persuasive than subjective claims.
Family marketing
focuses on the relationships between family members based on the roles they assume, including the relationship between purchaser and family consumer and between purchaser and purchase decision maker
Wi
importance of attribute i ex: Provide ratings of attribute importance notatallimportant _:_:_:_:_:_:_ extremelyimportant 0123456
Search intentions
indicate consumers' intentions to engage in external search ex: The next time you need to be hospitalized, will you speak to your doctor before choosing a hospital? Nochance 1 2 3 4 5 6 7 Idefinitelywill
Repurchase intentions
indicate whether consumers anticipate buying the same product or brand again ex: The next time you purchase coffee, will you buy the same brand? Nochance 1 2 3 4 5 6 7 Idefinitelywill
Influencer-
individual whose opinions are sought concerning criteria of purchase and which products or brands are most likely to fit those criteria.
Consumption norms:
informal rules that govern our consumption behavior (eg: corsage on a prom, hot dog at baseball game, suit & tie, etc.)
Reference pricing
information about a price other than that actually charged for the product is provided. Eg: price tag may carry actual price and manufacturer recommended price or MSRP or price previously charged.
Initiator/gatekeeper-
initiator of family thinking about buying products and gathering information to aid decisions.
Ethnography
involves describing and understanding consumer behavior by interviewing and observing consumers in real- world situations. Shadowing, Behavioral Mapping, Consumer Journey, Extreme User Interviews, Storytelling, Unfocus Groups, etc. Evaluations also occur following consumption . Consumers experience satisfaction or dissatisfaction.
Rehearsal
involves the mental repetition of information or, the recycling of information through short-term memory. Rehearsal may be described as a form of inner speech.
Cohort analysis
is fundamental to understanding changing consumer markets. The key to cohort analysis is examining the influences that are shared by most people in a specific group. -Ultimately, these influences affect consumer decision processes and the types of products, brands, and retailers consumers prefer when responding to a firm's marketing strategy.
How is the size of short term memory measured:
is measured in terms of info chunks, a grouping of information that can be processed as a whole unit. Capacity varies from 4 to 7 chunks.
Recall
is more cognitively demanding than recognition. -Unaided (free) recall -Aided (cued) recall Consumers remember more when they answer aided rather than unaided recall measures.
Mental capacity
is the cognitive resource for attention. Cognitive psychology focuses on understanding human beings' mental capacity
Elaboration
is the degree of integration between the stimulus and existing knowledge.
Ability to learn depends on--
knowledge -which allows more meaningful elaboration.
Peripheral process
leads to the formation of opinions without thinking about relevant information -Often attitude toward an ad is an important determinant of advertising effectiveness in shaping opinions.
Day-after recall (DAR)
measures brand recall 24 hours after ad exposure.
Span of attention
measures how long short-term memory can be focused on a single stimulus.
Decay theory
memories grow weaker with the passage of time. Failure to retrieve something which has not faded from memory is attributable to 'interference'.
Associative Network
memory nodes containing bits of information are linked to other memory nodes in a series of hierarchical networks.
long-term memory
mental ware-house where knowledge is stored.
The Fishbein Multiattribute Attitude Model
n Ao =Σbi ei i=1
Advergaming
new medium for advertising in which "games containing product associations" are utilized on commercial websites. .
Extended family
nuclear family, plus other relatives such as grandparents, uncles and aunts, cousins, and parents-in-law.
Fertility rate
number of live births per 1,000 women of childbearing age (15 to 44 years).
n
number of salient attributes
n
number of salient or important attributes
Exposure
occurs when there is physical proximity to a stimulus that allows one or more of our five senses the opportunity to be activated.
Stimulus generalization
occurs when, for an existing stimulus- response relationship, the more similar a new stimulus is to an existing one, the more likely it will evoke the same response. g: designing 'me-too' packages to imitate leading competitor's packaging to create favorable opinions among consumers.
The amount of Elaboration that occurs during info processing depends on.....
on the person's motivation & ability to do so.
Children exert indirect influence when...
parents buy products and brands that they know children prefer without being asked or told to make a specific purchase.
Buyer
person who acts as the purchasing agent by visiting the store, calling suppliers, writing checks, bringing products into the home and so on.
Decider
person with the financial authority or power to choose how the family's money will be spent and on which products and brands.
Motivation
plays a role in the amount of elaboration a person employs to remember. -Intentional learning -Incidental learning
Preferences
represent attitudes toward one object in relation to another. ex: Compared to Apple personal computers, how much do you like Dell personal computers? LikeDellmuch 12345 LikeApplemuch more than Apple more than Dell
Consumption intentions
represent consumers' intentions to engage in a particular consumption activity ex: Will you watch the next Super Bowl? Nochance 1 2 3 4 5 6 7 Idefinitelywill
Purchase intentions
represent what consumers think they will buy ex: Will you buy a Mercedes-Benz automobile during the next 12 months? Nochance 1 2 3 4 5 6 7 Idefinitelywill
Attitude towards the object (Ao)
represents an evaluation of the attitude object. ex:How much do you like/dislike Dell computers? Like very much 1 2 3 4 5 Dislike very much
Attitude towards the behavior (Ab)
represents the evaluation of performing a particular behavior involving the attitude object. ex: Buying a Dell personal computer would be: Verygood 1 2 3 4 5 Verybad Very rewarding 1 2 3 4 5 Very punishing Very wise 1 2 3 4 5 Very foolish
recognition
requires identifying something as familiar because we've seen it before. With brand or ad recognition measures, the to- be-remembered information is provided.
Search Engine Marketing
search engines lead consumers to company websites and provide a way to reach new customers.
composite branding
shows the brand name appearing first has the strongest influence on attributes associated with that name. Eg: 'Godiva chocolate cake mix by Slim-Fast' vs 'Slim-Fast chocolate cake mix by Godiva'.
Demographics
size, structure, and distribution of a population
bi
strength of the belief that object has attribute i ex: (running shoe) How 'durable' is brand A running shoes? verydurable _:_:_:_:_:_:_ notatalldurable +3+2+1 0 -1 -2 -3 For each brand, an assessment of consumers' beliefs for each attribute must be done. Given 3 Brands & 6 attributes, a total of 18 belief measures would be needed.
Natural increase
surplus of births over deaths in a given period.
The study of demand related to geographic areas assumes what?
that people who live in proximity to one another also share similar consumption patterns and preferences.
Family and household spending
the FLC is an important predictor of family or household spending. In the last decade, consumers have changed their household spending from "things" to "services".
Cognitive age
the age one perceives one's self to be
Attention
the amount of thinking focused in a particular direction. Before companies can expect to get consumers' money, they must get their attention. With attention, products get into consumers' 'consideration sets' (the final alternatives considered during decision making). Disclosing more product information may actually confuse consumers rather than help them.
Inference Theory
the chances of retrieving a particular piece of info become smaller as interference from other info becomes larger. Clutter of advertising may also interfere with retrieval. Interference effects can also arise when the endorser of one product also endorses other products
Stimulus Categorization
the classification of stimulus using concepts stored in memory - the category to which a product is assigned will affect how the product is interpreted - Products and advertisements can sometimes be miscategorized
Business Websites
the company's online presence should facilitate its brick-and-mortar operations to attract new customers and satisfy its existing customer base.
Brand name suggestiveness
the degree to which the brand name conveys a brand attribute. (eg: DieHard, Energizer, Zest, Sparkle, I Can't Believe It's Not Butter, etc.) Suggestive brand names can enhance recall of ad claims that pertain to the same attribute suggested by the brand name.
Forgetting
the failure to retrieve something from memory.
Husband dominant
the husband or male head-of- household makes a majority of the decisions.
Family life cycle (FLC)
the process of families passing through a series of stages that change them over time. The concept may need to be changed to household life cycle or consumer life cycle to reflect changes in society. Eleven primary stages have been identified, but households do not necessarily go through all stages. Which stages families go through is based in part on their lifestyle choices.
Short term memory
the stimulus is interpreted and contemplated using concepts stored in long- term memory (where thinking occurs). Short-term memory is a limited mental resource.
Wife dominant
the wife or female head-of- household makes a majority of the decisions.
Children exert direct influence over parental spending when...
they request specific products and brands
Mobile marketing
transmission of text and multimedia content to cell phones and wireless communication devices are increasing in popularity.
Emotional advertising appeals
try to influence consumers' feelings about the advertised product.
Consumer Beliefs A Sampling of Consumer Beliefs (Know a couple, not all)
~If a deal seems too good to be true, it probably is. ~You can't believe what most advertising says these days. ~Auto repair shops take advantage of women. ~People need less money to live on once they retire. ~It's not safe to use credit cards on the Internet. ~Appliances today are not as durable as they were 20 years ago. ~Extended warranties are worth the money. ~You get what you pay for: lower price means lower quality. ~Changing the oil in your car every three thousand miles is a waste of money.
