MAR 3503 Exam 2 review (Ch.7-10 & TCR)

*APPLE*

Apple has long been focused on eco-friendly product design and packaging, a concept which extends to the disposal of electronic equipment *out with the old* sometimes, to make room for new equipment, you need to dispose of existing systems and then find the funds to pay for new purchases from an ever-tightening budget *trade in used equipment from any manufacturer, and apply value to your new product* with Apple's Trade-In Program for Education, Apple will not only help you remove old products, but will also help you to recover any remaining value to help offset the cost of a new purchase Apple, in conjunction with its third-party vendor, also removes data and provides a disposition report for each system with residual value to facilitate your asset management

MAC ( Cosmetics Company)

*Back to M.A.C Program* because we share your commitment to the environment, M.A.C accepts returns of its primary packaging through the Back to M-A-C Program by returning [6] M.A.C primary packaging containers to a M.A.C counter or M.A.C Cosmetics online, you receive a free M.A.C lipstick of your choice as our thanks to you

supplemental reading: *Identity Bias*

*Identity Bias* has to do with whether or not something has your name on it and as a function of having your name on it, do you consider it to be garbage or not? research --> recycled materials that either had your name on it or didn't -- found that when something has your name on it, you don't perceive it to be garbage and therefore are more likely to recycle it -- means if there is some part of ourselves associated with an item then we are more reticent to junk it and more likely to give it a second life. -- Trudel: "it feels bad to throw a piece of yourself in the trash, so people avoid it." similar research --> looked at whether a can is crushed or not (solid) -- found that when the can is crushed and looks more like garbage, we're more likely to throw it in a trash bin; but when it's whole, consumers are more likely to recycle it because it seems less like garbage and more like something that can be recycled -- "When an item is sufficiently distorted or changed in size or form, people perceive it as useless — as something without a future," Trudel writes. "So they throw it in the trash."

How can we improve our self-control [as consumers]?

*Marshmallow Test* Walter Mischel : Children and Willpower - give a child a single marshmallow, then leave him or her alone in the room with it until an adult comes back (15 minutes later) and they will get a second marshmallow - the child was given the option to ring a bell at any point to eat the one marshmallow immediately (if they couldn't wait) what strategies did the children use? - look/turn away from the marshmallow - cover their eyes with their hands - sit on hands, tug on their pigtails - lay games, kick the desk - stroke the marshmallow as if it were a tiny stuffed animal -- strategies to resist eating the marshmallow results: - most struggled to resist the treat, waited less than 3 minutes - almost 30% successfully delayed gratification for 15 minutes outcomes (years later) ... - higher SAT scores - lower likelihood for drug abuse

Low-Effort Thought-Based Decision Making

*PRICE as a simplifying strategy* *zone of acceptance* acceptable range of prices *price perceptions* must be a noticeable difference - odd prices as cheaper ($1.99 vs. $2.00) *the deal-prone consumer* more likely to be influenced by price - "cherry picks"

Feelings as a Simplifying Strategy

*affect* low-level feelings; more influenced with hedonic (vs. functional) products or services *affect referral* when we simply remember our feelings about a product or service affect-related tactics: use a form of category-based processing *brand familiarity* easy recognition of well-known brands *visual attributes* color ads are more appealing co-branding: two brands form a partnership to benefits from the power of two EX: TGI Friday's Jack Daniel's Grill

External Search: *opportunity* to process information

*amount of information available* - search more with more available information *information format* - diverse location - more difficult to search; internet may provide a "one-stop" place to search *time availability* - crucial to external search -- creating a sense of urgency is very effective *number of items being chosen* - more items, search more

*Brand Loyalty* as a Simplifying Strategy

*brand loyalty* result of very positive reinforcement of a performance-related choice tactic *multibrand loyal* (2 or more brands)

What kind of information is acquired in external search?

*brand name* - consumers use prior knowledge and associations of the brand - collect information on one brand before moving on to the next brand *price* - diagnostic; make inferences on value and quality *other attributes* - additional information (i.e. dependent on salient attributes)

Types of Decision Processes: *Compensatory vs. Non-Compensatory*

*compensatory* - a mental cost-benefit analysis model used to make a decision - consumers choose the brand with the greatest number of positive features relative to negative *non-compensatory* - simple decision model in which negative information leads to rejection of the option (less cognitive effort relative to compensatory model)

Is internal search always accurate?

*confirmation bias* tendency to recall information that reinforces or confirms our overall beliefs - a more positive judgement that should be, i.e. selective perception *inhibition* the recall of one attribute that inhibits the recall of another (limitations in processing capacity) EX: recall the selling price and # of bathrooms, but do not remember the name of the school system when looking for a home to buy

*High-Effort Decision-Making Processes*

*consideration set (evoked set)* subset of brands evaluated when making a choice *input set* options that are *unacceptable* when making a decision *inert set* options toward which consumers are *indifferent*

External Search: *ability* to process information

*consumer knowledge* - subjective and objective knowledge - experts may search less; moderate levels of knowledge search the most *cognitive abilities* - process complex information *demographics* - higher education search more due to better access to information searches

How *Decision Framing* Can Affect Decision Making

*decision framing*: the initial reference point or anchor in the decision process EX: Coupon 1: free can of soup ($.49 value) or Coupon 2 $.49 off - consumers chose 1st option (a gain vs. a reduced loss) framing by the consumer --> "get food that is on my diet" vs. "get food that makes me feel good" - activate different brands *external framing - The Beef Study* - presenting 75% lean vs. 25% fat beef -- consumers found the 75% lean more desirable even though its the exact same beef

High-Effort Judgement Processes

*decision making*: choosing between options or courses of action - evaluating how you think you might feel in the future *judgements*: estimating/evaluating the likelihood of an event - does not require a decision -- judgements of goodness or badness(desirability of product or service features) -- estimating the likelihood that you're going to feel a certain way about the outcome (how likely a product will satisfy your needs) --- *judgements are a precursor to the decision*

pricing (video)

*ego pricing* when a price has something that's personally relevant to the consumer EX: study --> people who saw a price with their birthday in it reported 23% greater likelihood of purchasing that product just because it matched their birthday *the comma effect* when a comma is included in a number that includes thousands, how that influences consumer's price perspective EX: study --> $1342 vs. $1.342 - when there was a comma in the price, people perceived it as being 11% bigger relative to the non-comma price *relative size effect* the size of the numbers themselves (how prices are presented in the marketplace) EX: you want to discount your product, but how do you present those prices? ($100 --> $75) - research has looked at whether you should make the sales price ($75) really big to draw people's attention to it or make the sale price really small because, after all, you want people to think it's a small number relative to the original price -- found that the making the numbers smaller is the optimal version where people report greater purchase likelihood when they present the sale price in a relatively small font because it signals people to think of it as smaller number *consolidated surcharges* broken out individually or all consolidated EX: you have a product ($129) and you have to charge an additional fee for shipping (4%) and a further additional fee for tax (8%) - research shows that rather than leave those two surcharges separate (i.e. $129 + 8% tax + 4% shipping), you should combine them together in one lump surcharge even if it looks as though that surcharge is bigger (i.e. $129 + 12% tax & shipping) *descending order effect* order and placement of an item on a list Ex: bar study --> for an 8-week period, they got the bar to use different menus every other week, so some weeks they would list the beers on the menu in ascending order from least expensive to the most expensive and on other weeks they would list the beers in the opposite order starting with the most expensive and going down to the least expensive -- found that the weeks where the beers were listed in descending order (starting with the most expensive), people chose more expensive beers on average compared to the week where the same beers were listed in the opposite order

High-Effort Judgement Processes: *Conjunctive Probability Assessment*

*estimating that 2 events will occur simultaneously or 2 attributes are related* EX: expect a rich flavor means high calories; national brand means higher quality EX: frozen pizza, not tasty relative to going to a pizza restaurant - DiGiorno ads try to overcome this judgement -- "it's not delivery, it's DiGiorno"; Hundai has tried to do the same thing because they are perceived as a value brand ... now tries to offer higher end range and must overcome quality perceptions *illusory correlation* thinking a relationship between two things exists when it does not - can occur when information is ambiguous

*Habit* as a Simplifying Strategy

*habit* little or no information seeking or evaluation of alternatives, reduces risk

How does low-effort decision making differ from high-effort decision making?

*hierarchy of effects* sequential steps used in decision making

Approaches to Search for Problem Solutions

*internal* memory thinking *external* word of mouth media store visits trial

Responses to Dissatisfaction: Responding by WOM

*negative WOM communication* the act of consumers saying negative things about a product/service to other consumers

Decision Making When Alternatives Cannot Be Compared

*noncomparable decisions* - deciding between product in different categories e.g. high end anniversary gift - that could be jewelry or something electronic *alternative-based strategy* (top-down processing) overall evaluation of each option *attribute-based strategy* (more of a bottom-up strategy) abstract representations of comparable attributes (i.e. fun, likelihood of impressing a date)

Responses to Dissatisfaction: Complainer Types

*passives* least likely to complain *voicers* complain directly to retailer *irates* angry customers, engage in negative WOM, stop patronage *activists* engaging in all types of complaining

Disposition: Disposing of Meaningful Objects

*physical detachment* physically disposing of an item *emotional detachment* emotionally disposing of an item - give up pet for adoption - selling a valued car - people losing their house - pack rats

Dan Ariely (video) on consumer self control

*reward substitution* - the idea is that there are many things in life, particularly delayed rewards that we are just not designed to care about - taking the environment and changing it and getting people to behave in the right way because of the wrong reason *self-control contracts* - Ulysses and the sirens -- Ulysses knew that when the sirens came he would be tempted so he tied himself to the mast and put stuff in their ears so they would not be tempted either -- a situation in which we know we will be tempted and we're doing something to make ourselves not be tempted - rats, pigeons, and the red button (no temptation button - turns off the green button) -- delayed gratification and commitment -- if we face temptation with no tools to overcome it, we will fail much like rats and pigeons -- but, if we create something that allows us to bypass temptation like Ulysses contract, then maybe we have hope to overcome temptation how do we design the world to help us overcome our temptation and how do we do it without obstructing too much with human freedom and rights?

How do consumers make satisfaction or dissatisfaction judgement?

*satisfaction* positive evaluation feel needs and goals have been met *dissatisfaction* negative evaluation other influences on satisfaction: - post-decision feelings: positive or negative emotions experienced while using the products or services -- can be independent of their expectations and evaluations

How do we engage in external search?

*search stages* - early stages: mass media, marketer-related sources - access more salient information; search for brands with higher perceived attractiveness *searching by attributes* - consumers compare brands one attribute at a time (i.e. price comparisons) Ex: Taco Bell vs. McDonald's - what are the attributes of each brand?

How Task Characteristics Can Affect Decision Making

*the consideration set* *attraction effect* - adding inferior brands to consideration set, *inferior brand increases attractiveness of dominant brand* (increases decision accuracy and decreases effort) extremeness aversion - extreme options are less attractive - options that are extreme on some attributes are less attractive

examples of consumption behavior:

- reading (buying book downloads) - exercise (consuming fitness memberships, many outdoor activities, hobbies of numerous kinds) - services: festivals and celebrations, artistic endeavors such as music, painting, and sculpting - caring for and maintaining things we own, gift giving, sharing, donating, and recycling -- consuming products, services, experiences has the power to enhance quality of life while also supporting business and society

dissatisfied consumers can:

- take no action - discontinue purchasing the product or service - complain to the company or to a third party and return the item - engage in negative WOM

Consumer Decision-Making Process

1. problem recognition 2. information search 3. evaluation of alternatives 4. purchase 5. postpurchase behavior - cultural, social, individual and psychological factors affect all steps

4 avenues of problem recognition:

1. stock depletion 2. life stage changes 3. new products/new technology 4. developing new tastes

External Search: Where can we search for information?

5 main sources: - *retailer search* (visit, call stores, review pamphlets) - *media search* (ads, online ads, manufacturer websites) - *interpersonal search* (advice from friends) - *independent search* (books, non-brand sponsored info) - *experiential search* (product samples, trials)

Snickers Spelling Campaign

target: office workers misspelled popular "business" search terms - peripheral route of using humor -- nudging consumers to have a preference for Snickers

self-control

the ability to override, interrupt, or otherwise alter one's natural responses - endure discomfort or forgo pleasure now to get a reward later -- forgoing pleasure can be difficult when immediate pleasure is salient -- enduring discomfort now can be difficult when ... costs are salient (i.e. immediate costs, delayed rewards)

Disposition

the many ways we can dispose of something - give away - trade - recycle - sell - use it up - throw away - destroy - abandon (discard in socially unacceptable way)

External Search

the process of the collection of information from outside sources (friends, magazines, ads, ...) - prepurchase search (occurs to help a specific decision) - ongoing search (occurs regularly, regardless of whether consumer is making a decision (i.e. attend auto shows, read auto magazines)

High-Effort Thought-Based Decisions

types of decision processes: *brand vs. attribute models* *brand processing*: evaluating one brand at a time *attribute processing*: comparing brands, one attribute at a time; easier than brand processing EX: price comparisons - other attributes: cancellation policies, added fees, prices, package discounts, do you get to select a specific hotel/airline/time, etc.

Performance as a Simplifying Strategy: *Performance-Related Tactics*

used when the outcome of the consumption process is positive reinforcement - based on benefits, features, or evaluations of the brand - represent an overall evaluation or a specific attribute or benefit

use innovativeness

using products in a different way than they were designed

Decision Making Based on Variety-Seeking Needs

variety seeking - why? -- satiation and boredom - motivated to relieve boredom when arousal level falls below the optimal stimulation level (OSL) - sensation seekers are less tolerant of boredom than others - vicarious exploration - window shopping just for stimulation - use innovativeness - using products in a different way

Responses to Dissatisfaction: WOM

what are common themes [from customer complaints after a purchase]? complaints --> marketers should encourage consumers to complain why? --> company needs feedback -- opportunity to improve product quality, improve service delivery, and strengthen the relationship with customers by delivering a product and service

Supermarket Psychology (video)

what heuristics or shortcuts are discussed in the video? - research has shown that when the word "special" comes up, it sets off a psychological process which says if it's special, it must be good -- also feeds into a theory called scarcity effect what is pricing scarcity? - if it's on special, it's only available for short time, and we actually give it more value

actual state

where we are now

ideal state

where we want to be - motivated by self-image, social class, reference groups

vicarious exploration

window shopping just for stimulation

High-Effort Thought-Based Decisions: *Attribute Processing Models*

EX: selecting a university *lexicographic model* compares all brands by one key attribute, one at a time - quality of the business school (e.g. rankings) - extra-curricular - sports team - beauty of campus, location -- if one brand dominates, the consumer chooses it *elimination-by-aspects model* (i.e. reject brands that do not have a key feature you want) - similar to lexicographic model, but includes an acceptable cutoff (i.e. order attributes by importance, compare options based on attributes, eliminate below cutoff) 1. ranking of the business school (must be in top 30 nationally) 2. extra-curricular 3. sports team 4. beauty of campus/location

External Search: *motivation* to process information

How much do we engage in external search? motivation to process information: - involvement (situational vs. enduring involvement) and perceived risk (reduce uncertainty) - perceived costs and benefits - the consideration set -- more alternatives - search more; only 2 brands - search less motivation to process information: - relative brand uncertainty (also relates to perception of risk) - attitude toward search (individual difference factor) -- some consumers like to search more than others - discrepancy of information -- highly incongruent information, search more to resolve incongruity (i.e. new products)

Disposition: *Recycling*

MAO motivation to recycle --> do benefits outweigh costs? - what are the costs of recycling? - what the benefits? ability to recycle --> do you know how to recycle? - where/how can you recycle? - what can you recycle? - convenience? opportunity to recycle --> provide containers - what is not easily recyclable? -- batteries

External Search: Progressive Example

Progressive Insurance ad - spokesperson Flow is promoting that they will help you with your external search -- they will provide you information about their prices as well as information about their competitors prices - counting on the fact that they can be competitive the majority of the time - may garner some goodwill with the consumer by providing that information for the consumer all in one place

Daniel Kahneman

What is system 1 vs. system 2? - system 1 is fast thinking (2+2) - system 2 requires more effort (17x24) -- reason slowly and effortfully (slow thinking) -- effortful computation Which one increases self-control and helps reduce bias? Why? - system 2 is monitoring and control because self-control is another effortful operation system (distinctively human) -- quality control - system 1 is automatic (grew out of animal heritage) Which are we using most of the time? - system 1 is in charge of what we do most of the time

Problem Recognition

a discrepancy between a current state and ideal state sufficient to arouse and activate a decision process - motivates the consumer to action

Post-Decision Dissonance

anxiety over whether the correct decision was made - can be reduced by searching for more information to make chosen alternative more attractive -- seems counter-intuitive at first .. searching for information after the purchase .. but makes us feel better!

Normative Choice Tactics

common among inexperienced consumers - decision making based on others' opinions can result from: - *direct influence* (others guide our behavior) - *vicarious observation* (observe others to guide behavior) - *indirect influence* (concerned about the opinions of others

Reality of Consumer Decision Making

consumers may use multiple decision-making strategies emotions and imagery often accompany rational, cognitive analysis

Does Context Affect How Decisions Are Made?

contextual effects: - the influence of the situation on the decision - consumer characteristics, task characteristics, task definition, presence of a group EX: purchase behavior might be different for a special event, someone was present, etc.

some problems faced by consumers include:

daily existence is more interconnected to consumer behaviors than ever before, encompassing issues of well-being - unhealthy eating - credit card mismanagement and difficulty in financial decision making - alcohol, tobacco, pornography, and gambling addiction and abuse - marketplace discrimination - ecological deterioration - vulnerability of at risk groups who are impoverished, impaired, or elderly

High-Effort Feeling-Based (Affective) Decisions

decisions based on feelings and emotions feelings are important for products or services that have *hedonic (sensory pleasure), symbolic, or aesthetic aspects* EX: Massage Envy brand (basically a subscription for getting massages) delivers a hedonic benefit to consumers EX: lipstick - offering something aesthetic in nature emotions impact how, what, and how long we consume products/services *imagery* important with emotional decision making

High-Effort Judgement Processes: *Anchoring and Adjustment Process*

defined: starting with an initial evaluation ("anchor judgement based on an initial value") and adjusting it with additional information *product bundling* (most important item serves as anchor, the others are judged and adjusted) EX: 10 items for $10 vs. dollar sale $1 --> starting from different anchor points in these two cases -- anchor of ten units and anchor of one unit ; although we may not want to buy ten units when presented with the anchor of ten, we're starting there and adjusting down to how many we actually might use ; if we start at one, we might buy two or three -- when we start with that anchor of ten for ten, we're buying more units overall and this can lead to stockpiling (especially if it's something shelf stable - so you can feel like you have an abundance -- *stockpiling tends to accelerate our rate of consumption*) -- whereas with the dollar sale example will tend to purchase fewer units overall

self control: environmental, social, and psychological forces

environmental cues to tell us "stop" and "go" - tangibility: functioning in cash (vs credit cards) can slow consumption social influences plays a key role psychological forces: cake or fruit salad? - influenced by your cognitive load -- under high cognitive load, people are less able to exert self-control

Learning from Consumer Experience

experiences during consumption or acquisition can be important sources of consumer knowledge - more motivated to learn - more vivid - involvement -- consumers can touch, feel, smell

how self control works: turning down chocolate

experiment: vodka OJ vs. plain OJ - two groups: both drinking a beverage, in one group they were drinking orange juice and in the other, vodka orange juice - when there's no alcohol involved, people's attitudes are very predictive of their behaviors - we see convictions as people feel more strongly that they want to resist chocolate -- their chocolate consumption goes down as their conviction goes up -- the stronger I feel about resisting chocolate, the less chocolate I eat (when no alcohol involved) - alcohol consumption is restricting the person's ability to exert self control - some people simply crave chocolate more than others - people who had alcohol and strong cravings were not able to resist 1) Attitudes predict behavior when alcohol is not involved! 2) People with strong convictions about dieting/avoiding chocolate were able to resist unless they drank alcohol. 3) People with strong cravings were able to resist unless they drank alcohol. In their experiment, the authors were able to predict the chocolate consumption of hungry test subjects based solely on their resolutions: those who did not want to eat very much, for instance, typically did not. After they drank alcohol, though, the strength of the participants' impulses became the dominant influence. Those who liked chocolate, regardless of their intentions, ate more than those who did not. - alcohols disinhibiting effect uncovers exactly what's happening to people when they have strong convictions about something that they want to do in terms of exerting self control and especially when that something is very tempting for them

*equity theory*

focuses on fairness of exchanges between individuals - consumers form perceptions of their own inputs/outputs in a particular exchange - then, they compare these perceptions with their perceptions of a salesperson, company, or dealer *fairness of exchange*: perception that one's inputs = their outputs in an exchange

zone acceptance

for example, what is the zone of acceptance for a bottle of shampoo (i.e. what is the range of acceptable prices?)

Extensive Decision Making (high effort decisions)

high levels of involvement high cost goods evaluation of many brands long time to decide (often) may experience cognitive dissonance (stress)

Hot-/Cool-System [Marshmallow Test]

hot: impulse desire cool: rational future planning hot system activation: think about how sweet and chewy the marshmallows are cool system activation: think about the marshmallows as clouds or cotton balls - taking the emotion out of processing -- kids were able to resist longer and were more likely to get the second marshmallow

What are benefits to business leaders in helping to understand and address such consumer questions?

how can businesses, and specifically marketers, play a role in helping to solve societal problems relating to consumer behavior in a way that is also good for business and the firm's bottom line? opportunities for well-being via consumer behaviors include: - empowerment (via the internet and increased consumer information and education) - product sharing - leisure pursuits - family consumption - pro-environmental activities

*attribution theory*

how individuals find explanations for events three influencing factors: - *stability* -- is the cause of the event temporary or permanent? chance occurrence or did many consumers have this problem? - *focus (internal or external)* -- is the problem consumer or marketer related? - *controllability (controllable/uncontrollable)* -- is the event controllable (could the marketer/consumer have prevented it?)

Buying on Impulse

impulse purchase - an unexpected purchase based on a strong feeling - typically caused by in-store display, TV ad with a phone number - 27-62% of consumer purchases are impulse buys

Transformative Consumer Research

in 2005, David Mick of the Association for Consumer Research launched Transformative Consumer Research (TCR) - promoting consumer well-being and improved quality of life through: rigorous scholarly research, training students in managerial decision making, working with firms to help in building healthy, long term relationships with consumers audiences: - consumers, their caregivers - policy makers - managers and executives - students loyalty is measured through repurchase behavior and positive WOM

Using *Simplifying Strategies* when Consumer Effort is Low

in low effort situations, the goal is not to optimize - more effort than consumers are willing to spend - more willing to sacrifice -- buying a brand that satisfies the need, even though it may not be the best brand (just good enough) *satisficers vs. maximizers* choice tactics (decision heuristics) - rules of thumb for common repeat purchases - apply rules to simplify decisions -- price, affect (I like it), performance, habit *satisficed* - just selected the option that was "good enough to do the job," not the "very best brand"

supplemental reading: *Gender Affiliation and Recycling*

in their research, found that consumers perceived a tendency to be concerned about the environment as a relatively feminine trait and as a result, some men involved in the study were less likely and less inclined to want to recycle because it diminished and was otherwise a threat to their masculine identity -- psychological link between eco-friendliness and perceptions of femininity -- highlight how the green-feminine stereotype inhibits men from taking eco-friendly actions, and suggest that masculine affirmation and masculine branding may be effective in narrowing the gender gap in environmentalism. Make the man feel manly, and he's more likely to go green.

Learning Choice Tactics

key to understanding low-effort decision making - knowing how consumers learn to use their choice tactics *operant conditioning* behavior = a function of previous actions and of the reinforcements and punishments received from these actions EX: reward for good grades, learned that this is a good behavior, more likely to perform behavior in the future *reinforcement * feelings of satisfaction when consumers perceived their needs were met *punishment* when needs aren't met, resulting in dissatisfaction *repeat purchase* learning occurs because the same act is repeatedly reinforced or punished over time

Low Effort: Limited Decision Making

low levels of involvement low to moderate cost goods evaluation of a few alternative brands short to moderate time to decide buy first, evaluate later

Minimizing Cognitive Dissonance

marketing can minimize cognitive dissonance through: - effective communication - follow-up - guarantees - warranties

problem recognition - marketing

marketing helps consumers *recognize an imbalance* between present status and preferred status - done through internal stimuli (everything in your memory) and external stimuli (things we encounter in the marketplace)

Internal Search: Searching for Information from Memory

memory - information, feelings (emotions), past experiences - short to long term factors of interest to consumer researchers - extent of the search - nature of the search - process by which information is recalled and entered into choice processes how much do we engage in internal search? - can vary from extensive (feelings, experiences) to simple (brand names) - depends upon MAO to process information (high perceived risk, felt involvement) - *can only engage in internal search if relevant information is stored in memory* what kind of information is retrieved from internal search? - recall of brands -- consideration or evoked set - top of mind, easy to remember (2-8 brands) -- factors that influence the recall of brands --- *prototypicality of brands* (closest to the prototype or most resemble other category members) -- brand preference --- brands consumers have a positive attitude toward are more easily recalled -- retrieval cues --- strongly associating the brand with a retrieval cue will increase recall EX: hourglass - Coca Cola; Clydesdale horses - Budweiser recall of attributes (remember less over time) - *accessibility* (repeated messages, highly relevant) - *salient* (prominent) attributes EX: McDonald's golden arches - *vividness* (vivid information via pictures, concrete words) -- 5 senses - *goals* (if a goal is to take a cheap vacation, more likely to remember price) recall of evaluations - easier to remember attitudes (likes/dislikes) vs. specific attributes over time recall of experiences - more vivid, salient of frequent experiences more likely to be recalled (positive experiences)

Recycling Behavior

more associated with masculine or feminine traits? - on one hand, associated with masculine traits because recycling is about protecting the environment -- protection characteristic is traditionally affiliated with masculinity - on the other hand, might be associated with feminine traits because taking extra care and effort and this sensitivity that comes with being concerned with the environment What are ways to motivate the following types of consumers to recycle? Why? politically conservative consumers politically liberal consumers

External Information Searches

need less information: - less risk - more knowledge - more product experience - low level of interest need more information: - more risk - less knowledge - less product experience - high level of interest

Post Purchase Bahavior

post purchase evaluation *post-decision regret*: a feeling that one has made the wrong purchase decision - especially after purchasing an expensive, high-involvement product - buyers are mostly likely to seek reassurance *cognitive dissonance* - did i make a good decision? - did i buy the right product? - did i get a good value?

What is consumer well-being?

promoting understanding and change ... physical - physical health, availability of healthy foods emotional - personal efficacy and human potential social - social justice and social integration, community networks, family coherence and legacies, child nurturance and growth environmental - ecological stability, and sustainable disposition of products

post-purchase surveys

questions: satisfaction levels? more or less satisfied? and customer loyalty? customers loyalty has two dimensions: repurchase intention will you tell other people? (positive WOM?)

Richard Thaler

scholar and won Nobel prize in economics *Mental Accounting and Consumer Choice* - provided new perspective on behavioral economics -- people are not completely rational in their preferences ~ segregate gains (2 smaller gains > 1 big gain) ~ integrate losses (2 small losses > 1 big loss) ~ cancellation principle (loss + gain < gain) - loss cancels out some of the joy of the gain ~ silver lining principle (loss + gain < loss) -- all economically equivalent scenarios

Low Effort Judgement Processes

shortcuts in making judgements *representativeness heuristic* making a judgement by comparing stimulus to category prototype *availability heuristic* basing judgement on events easier to recall based due to: *- base-rate information* - tend to ignore how often the event really occurs *- law of small numbers* - consumers expect info. from a small sample to be typical of the larger population, WOM very influential, consumers from less cosmopolitan communities may be more vulnerable to this

influences on problem recognition:

situational influences: - broken, lost, torn, etc. - product acquisition - changed circumstances consumer influences: - actual state vs. ideal state consumers marketing influences: - price information - promotional activities - product or service developments - place actions

supplemental reading: *Political Orientation and Motivation to Recycle*

study trying to encourage recycling behavior based on consumers political orientation - worked with solid waste company to weigh the amount of recycling that was done by different neighborhoods (also had statistics by neighborhood of what the typical political orientation was for each neighborhood) -- found that they could motivate either group to recycle, but what was important was the messages that were used to motivate the recycling behavior (i.e. where consumers were politically liberal, they were motivated by a sense of fairness, a sense of taking care of the planet whereas consumers that were politically conservative were motivated around messages of group membership and doing your part as a member of a group and complying with authority figures) ~ birds of a feather tend to flock together -- different consumer segments are going to be responsive to different types of messages to get them to engage in desirable behaviors

Goal Setting and Well-Being

study: asked people to set different types of goals - lose 10 pounds vs. lose 8-12 pounds - eat only 20 M&Ms vs. eat only 15-25 M&Ms - solve 8 puzzles vs. solve 6-10 puzzles *major finding:* which is more attainable? --> range or single number? - found the range goal felt more attainable to people and at the same time, felt more challenging (simultaneously, research has shown that these two components help lead to goal commitment) -- range goals have two anchors --- in the end, the range goal was more motivating for people (measured motivation based on people's willingness to stick with the weight loss program after the initial 10 weeks and continue the program after that implication: can also apply to saving money e.g. save $500 vs. save $400-$600