MAR3503: Exam 3 Study Guide

Meaningful Endorsements

"Likes" and "follows" don't carry the same weight as a real-world recommendation, it's a very weak endorsement. Seeing that your friends recommend or are using a product/app, leads to more downloads and purchases.

The Big Five (STUDY): Dodoo & Wen (2019) / Ad Avoidance

"The big five is arguably one of the most commonly-used personality frameworks to assess the relationship between personality traits & social networking site (SNS) use" Participants completed the big 5 Within-participants design: All participants saw all 5 marketing messages (in random order) After each ad, asked participants to indicate (DVs): Perceived relevance, perceived intrusiveness, and the likelihood of avoiding the ad.

Informational Conformity

"To be right" Leads to private acceptance People conform because: -Group behavior helps you learn what's right or true in an ambiguous situation -Mimic others' behavior because it seems to provide information about the correct behavior -Lack of knowledge/information In these situations, we accept information from another as evidence about reality because the opinions of other people have proven in the past to be a very helpful way to learn about the world. (helps be more accurate/correct)

Typology of Influencers

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

Victoria's Secret In The 80s & Early 90s

Classical music created a prestigious store atmosphere

Leonard Brickman: Authority & Clothing (Study)

Clothing can confer an aura of authority. Conducted a series of studies asking passerby to conduct odd tasks such as picking up a discarded paper bag or to stand on the other side of the bus stop. IV: He varied whether the requestor was normally dressed / dressed as a security guard. In one study, he had the requester say "You see that guy over there by the meter? He's overparked but doesn't have any change. Give him some!" Nearly all of the pedestrians complied with the "security guard" But less than half did when it was a normally dressed guy.

Manipulating Power: Physical

Clothing: -Professional attire: assertive & confident -Lab coats: symbolize attentiveness and precise work. Physical items can manipulate how powerful we feel: -Enclothed cognition -Incidental postures have also been shown to manipulate power experienced by people. (size/layout of workplace)

Influencer Marketing on Instagram (De Veirman Et. Al 2017)

Conducted two experimental studies with fake Instagram influencers: (Stephen/Stephanie Jones) Negative perceptions from consumers of: High # of followers, but very few accounts followed (less authentic) Negative view of new, unknown, unique products when paired with a highly popular influencer.

Normative Influence (Conformity)

Conforming to the social norms and expectations of others. We conform in order to be accepted or liked by others (social acceptance or social inclusion) We do something because we care about what other people think. Influenced by friends/peers, classmates, work organizations

What is an influencer?

Content creators, and they provide their followers insight into their personal, everyday lives through shared experiences.

Social Comparison Theory

Festinger (1954) proposed we mostly compare to similar others, but we also have a drive to move constantly upwards. Self-evaluation: our assessment of ourselves as talented or not, rich or poor, etc. depends on our comparison with others. As individuals, we can choose what our "ideal" is and also the type of comparison (similar, upward, or downward) we want to make.

The Participation Market

Firms can drive value by sharing internal activities, while simultaneously satisfying a customer need. You can make your customers happier by giving them the choice to do part of the work.

Why do norms matter?

Fitting the norm, we are rewarded with social acceptance and status. People do not want to appear foolish in front of others, avoid ridicule. Fear of rejection, avoid social disapproval and exclusion.

Milgram and Power: Follow-Up Studies

Follow up studies: When the power was removed, no one gave the maximum shock. 1) Fellow subject was assigned the "Researcher" role. 2) The "Learner" (but not the researcher) encouraged continuance. 3) There were two researchers giving conflicting orders and the teacher couldn't tell who was the "bigger" boss.

Expert / Informational Power

Followers believe that the individual has expert knowledge or information relevant to them, so they are able to influence opinions (credibility of source)

Legitimate Power

Followers believe that the leader has the "right" to instruct them and that they have an obligation to follow instructions; The individual has authority because of that individual's position in that context. Police, judges, professors, teachers (positions or titles)

Enclothed Cognition

Hajo & Galinsky Describes the systematic influence that clothes have on the wearer's psychological processes.

Manipulating Power: Structurally

Have people imagine themselves or role play in high/lower power roles. -boss/subordinate, teacher/stud Cognitively: "Recall a time / write about a time when you felt powerful" (vs powerless) By competing word fragments that are either associated with or dissociated from power (priming), or to simply imagine going either up or down an escalator.

Referent Power

If a person admires qualities of a person or group, we tend to copy. Can be behaviors/consumption patterns. Important because of voluntary modifications of behavior.

Voting Environment: (Jonah Berger et al, 2008)

If asked most people respond: -Near my office -Few will be specific Data gathered from Arizona's 200 general election: -40% in Churches -26% in schools -10% community centers -Rest: mix of appt buildings, golf courses, even RV parks Berger was interested in looking at where people vote to see if it changes how they vote. Initiative: Raising a sales tax from 5 to 5.6% to support public schools.

Others' Effects on Choice (Variety) (Ariely & Levav)

Much research on group-influence has shown the convergence of judgment and choice. Objective of their work was to examine the idea that individual choice in a group context reflects trade-offs (sacrifices) of different goals. 3 Goals of the consumer: 1) To be seen as unique: rather than copying others orders and conforming to the groups decision (self-presentation goal) -- so you order something diff. 2) To minimize regret: loss aversion... so you order the same dish/drink as everyone else. 3) To gather info: so you order differently after hearing opinions.

When Consumers Feel Powerful....

Various consumer behavior studies show individuals who have power / feel powerful: 1) take more risks and gambles 2) have greater confidence in their own thoughts. 3) engage in selfish behaviors such as lying, cheating on tasks 4) engage in more hit & runs 5) are more willing to pay for high status items 6) spend more on themselves (less financially generous) 7) likely to voice dissatisfaction

Eyes, More Than Other Facial Features, Enhance Real-World Donation Behavior: Field Experiment at Children's Museum: (Kelsey et al)

Multiple field experiments by various authors have found the presence of eyes compared with non-social controls has been found to: 1) increase removal of litter 2) increase voter turnout 3) reduce bicycle theft -Stimuli rotated across 28 weeks (2015-2017) -Image was enhanced to show eyes, nose, mouths, chairs (one week per photo) DV: Total donation amount and recorded number of patrons per week.

Music Environment: (Areni & Kim, 1993)

Music tempos affect the speed of consumer behavior: -Fast music: shoppers move more quickly, diners eat quicker -Slow music: relaxes diners, slower consumption When consumers feel good about music, they are likely to return (high-affiliation)

Example: Subsidiary Trait Scale

Must use the entire scale!

Video: Everybody's Doing It

Normative Conformity The subject in the elevator conformed to the social norms of being in the elevator. This was demonstrated by having everyone turn around or taking their hats off while standing in the elevator.

Myers-Briggs Type Indicator (MBTI)

Not widely used or accepted by psychologists.

Lewin (1952): WWII Americans / Meat

Nutritionists tried to get Americans during and just after WWII to cook meats like kidney/heart (organ meats) that were plentiful, as opposed to regular cuts. 1) Posters, pamphlets, media appeal (INEFFECTIVE) 2) Even well-prepared lectures emphasizing nutritional value and low cost, with recipes & cooking techniques, and an appeal to patriotism (INEFFECTIVE) People were concerned with real and imagined resistance from family members, and entrenched cultural norms about what "people like us" eat.

Music In The Environment: (North et al. 1999)

Wanted to investigate musical fit between product category and the music. Hypothesis: French music would activate French knowledge structures; German --> German IV: French of German music played at a supermarket in the UK on alternate days over a 2-week period -End-cap display of German and French wines (alternated placement: left vs right) that had the same price & level of sweetness -Small stereo playing the French/German music ----------------------------- French music led to French wines outselling German ones: 5:1 German music played, German wine sold well: 2:1 Only 1 of 44 respondent mentioned the music to the open-ended question. When prompted to state explicit whether the music had impact their choice, only 6 of 44 said yes. Music can prime (activate) related knowledge.

Example: Hotel Management (Goldstein / Griskevicius /Social Norms)

We are influenced by what we see others doing, but we don't see what others are doing in their hotel rooms. We are more likely to conform when we are told others share our circumstances.

Reward Power

Where the individual can offer rewards for doing something or completing tasks/behavior. Friends "reward" us with approval if we own the "right" objects. Advertisers frequently use reward power to influence consumers by implying that love, happiness, popularity, and success will be yours for using their product.

Sandra Matz (STUDY): Social Media-Based Personality Marketing

While facebook does not offer direct personality targeting, it allows targeting people based on interests. Campaigns boosted clicks on ads for beauty products and gaming apps by up to 40% and boosted sales as much as 50%.

Nonconformity

Within limits, people approve of others who exhibit nonconforming behavior Non-conforming behaviors can be a demonstration of: -Power/Bravery/Status

Aroma Marketing: (Spangenberg, 1990/1996)

Smell is the quickest way into the brain showed that aromatic marketing (ambient scents) can positively impact in-store perceptions & behavior. Compared evaluations of - and behavior in - A retail store with no scent vs The exact same retail store with ambient scents... Results: in both the "neutral" and "pleasant" aroma conditions, customers: -perceived they were in the store: whereas customers in the store with no scent thought -had improved perception of the store's environment and merchandise indicated an increased intention to visit the store again indicated increased purchase intentions for specific products Other research found that pleasant ambient scents increase time spent evaluating brands enhanced brand recall (memory)

Power In Consumer Behavior

Sometimes we feel powerful, sometimes we don't. Power CAN be manipulated. Physically, structurally

External Trigger of Nostalgia: (Zhou et al, 2012)

Surprisingly, cold ambient temperatures also trigger nostalgia Step 1: IV = Chinese students were put in one of 3 ambient temperatures in a waiting room 1. Cold room (20°C) 2. Normal / comfortable room (24°C) 3. Warm room (28 °C) Step 2: 5-minute filler task Step 3: assessed nostalgia with a Nostalgia Inventory - rated (1 not at all -- 7 very much) the extent to which they felt nostalgic for 20 items from their past: -music, places, friends, tv shows

Social Power (5-Types)

The capacity to alter the actions of others. These 5 classifications help us distinguish reasons for why a person exerts power over another person. Referent Reward Coercive Legitimate Expert

Article: "The Manager in Red Sneakers" How To Gain More Respect At The Office

people who wear offbeat clothes in a professional setting are often perceived as having a higher status and more competence than those who dress conventionally. People exert great effort to follow expected dress codes and etiquette in both professional and nonprofessional settings, with the belief that conforming to these written and unwritten rules helps them gain acceptance in the eyes of others. So results favoring those who break the rules seem counterintuitive nonconformity can send its own signal of high status by visibly expressing the fact that people can afford to follow their own path—a perception that the researchers called the "red sneakers effect." The authors say a key message for firms and individuals is simple: "It's not only OK to be yourself, but it can actually be very beneficial. You're seen as confident, autonomous, and well regarded."

Big Five / Five Factor / OCEAN Model

An individual can be mapped to a sliding scale from low to high on each factor. 1) Openness to experience -Level of imaginativeness, openness to new things/people 2) Conscientiousness -Level of structure needed 3) Extroversion -Level of socializing & tolerating stimulation from other people. 4) Agreeableness -Level of pro-social behaviors. 5) Neuroticism -Emotionality; how well you cope with stress.

Personality Traits in Marketing: Magnum

Appealing to two sides of a personality...

Big Five & Behavior

Are stable/heritable. Studies with identical and fraternal twins find 40-50% of personality traits are inherited. Largely cross-cultural Can be predictive of activities and consumer behavior.

Article: Lipstick Tips / How Influencers Are Making Over Beauty Marketing

"influencers" like Hughes are changing the face of the beauty industry, attracting cult-like followings on social media, particularly Instagram and YouTube. In the competition for the consumer's attention, consumers increasingly reject more traditional forms of marketing like TV commercials and magazine ads—as less credible and less trustworthy. In evaluating beauty products, the women said they trust third-party product reviews most and company advertisements least. And they said influencer marketing sways their purchasing decisions most, while direct-mail marketing is the least effective way to reach them. When asked which social media channels they visit most, Instagram was at the top, used daily by 82 percent of respondents; Facebook ranked second at 77 percent; and YouTube was third at 59 percent. Still, they find the notion of hyping products for money off-putting. While 42 percent said they would purchase a product that a company paid an influencer to promote, another 43 percent said they were unsure, and 15 percent said they would not. The lessons from Vettese's research apply not just to beauty brands, but to other industries as well, she says: "Figure out which social media channels will attract your audience, be deliberate about how you showcase your products on different channels, and make sure the people who represent your company will be seen as authentic, trusted voices of the image you want to present."

Being "Watched": (Bateson et al, 2006)

*Assigned Article* - wanted to see if this occurs in a natural setting. Office kitchen at British University had an honesty box they had to pay $$ for each coffee/tea/milk consumed. Researchers decided to add a picture of eyes along the price lists. Tea, coffee, milk prices: 30, 50, and 10 pence 10 weeks: different images posted above the price list (no explanation given) -either eyes or flowers -different images used each week to control for any effect attributable to any one image.

What makes us more likely to conform?

-Cultural pressures -Certain cultures encourage conformity to a greater/lesser degree -Fear of Deviance -Sanctions or shunning people who are different or "not a team player" -Commitment -Great the commitment to a group, greater the motivation to conform. -Group unanimity, size, and expertise. -As groups gain power and size, more conformity present. -Susceptibility to interpersonal influence (Individual Difference) -Age/Wealth/High-Confidence -Some people particularly with a high need for uniqueness, like to be noncomformist.

The Big Five (STUDY): Axelson et. al / Personality Impacting People with Chronic Disease

1) Big 5 was assessed with questionnaire 2) Medication adherence assessed with 5 items: I forgot to take them, I alter the dose, I stop taking them for a while, I decide to miss out a dose, I take less than instructed. 5 point response scale (often-never

How to increase customer engagement?

1) Encourage and reward many types of user-generated content (UGC) 2) Meaningful endorsements 3) Engage your true fans

Examples: Informational Conformity

1) Following others in an ambiguous situation. -Example: Visiting a foreign country/restaurant with foreign cuisine and observing how the locals eat a particular food. 2) Panic Buying -Example: Contagion effect 3) Mimicking a credible source

Kie et. al. found that more influencers satisfy followers' needs for:

1) Ideality: Desire to seek a person with traits they admire 2) Relatedness: Desire to feel socially connected with others. 3) Competence: Desire to feel capable or effective. "The more they perceive . . strong emotional bonds with their followers." Results: When influencers fulfill these 3 follower needs, followers: Become more attached to the influencer, feeling a stronger bond Leads them to accept product/brand recommendations from the influencer.

Followers Like and Follow Social Media Influencers Because Of:

1) Persona-driven attributes a) Inspirational b) Enjoyability c) Similarity 2) Content driven attributes a) Informativeness b) Visual aesthetics c) Expertise

Limitations of Personality Approaches

1) Power of the situation: we are not always predictable across situations -Example: Honesty in children (Hartshorne and May 1928) or Cheating among adults (Dan Ariely: Ted Talk) 2) Problems with the assessment -Either the test itself lacks validity -Administration of the assessment

John & Emrich: Tested Effects of Liking

2 conditions: 1/2 of participants were invited to like the page (most people accepted) 1/2 were not invited to like the page Then they give participants coupons for a free sample

Sherif's Study on Perception

2) Assuming the group's opinion is better than your own: Stage 1: Sat in a very dark room alone with a dot of light 15 feet away. --> Asked how much does it move Autokinetic Effect: -The dot is stationary but it appears to be moving (perceptual illusion) -People generate fairly stable estimates across trials. -Estimates GREATLY differ person to person (inches to several feet) Stage 2: Participants return 2 days later to make estimates in a room with 2 others. -2 people with similar estimates -1 with very different estimates

Hajo & Galinsky: "Enclothed Cognition" Experiment

3 Conditions: -Wearing a doctor's coat -Wearing a painters coat -Seeing doctor's lab coat on display in the lab (rule out priming) To measure sustained attention: measured four comparative visual search tasks. The pictures were identical except for minor differences. Ps were asked to find as many differences possible. Results demonstrate the clothing affected the behavior of participants when wearing the doctor coat.

Example: Normative Influence (Asch, 1956) Video

50-80% of participants yielded to the erroneous judgement at least once. Overall, conformity occurred on 1/3 of all critical trials.

Reference Groups

A person or group of people that set standards and significantly influence an individual's thoughts, aspirations, or behaviors. Provide reference points that help to define the consumers reality & influence our evaluations, aspirations, or behaviors. 3 Types: -Membership Groups: Close groups with which we interact with on a regular basis -Avoidance Groups: Negative reference groups that you want to distance yourself from. -Aspirational Groups: We identify or admire and aspire to be like. We often try to emulate them through consumption.

Abercrombie & Fitch Effect: (LAB STUDY)

Additional lab studies: examined how seeing a picture of dominant vs non-dominant male affected preference of brand logo size

Intrasexual Competition: Women

After seeing pictures of attractive women: -Favor weight loss pills -Extreme exercise -Excessive suntanning Women focus more on person attraction rather than physical consumption like males.

The Red Sneakers Effect (Gino / Keinan)

Describing a brave person who sports a pair of red sneakers in a professional setting. Field study: 2 groups of participants. 1) Shop assistants in Milan, Italy at high-end stores 2) Pedestrians in Milan DV: Asked to indicate the status of a luxury client when dressed either 1) Gym clothes or 2) Elegant dress The study reinforced the idea that observers who are familiar with the environment and the way people usually dress, the shop assistants in this case, are more likely to give higher status points to someone who dresses differently.

People distort their opinions/behaviors even when:

Situation is not ambiguous The task is simple Others' behavior is bizarre or incorrect Ability of the group to reward or punish is relatively low.

Personality

Individual differences in characteristic patterns of thinking, feeling and behaving Personality is relatively consistent/stable over time, but can vary depending on situations. In fact, research with 1000s of people show that our measures of personality tend to stabilize by age 30. More dramatic changes occur at younger age. Personality traits are often not helpful when we need to predict behavior in novel situations.

Fundamental Attribution Error

Inflated belief about the importance of personality traits, together with a failure to recognize the importance of situational factors affecting behavior. Incorrectly attributing behavior to the person, not realizing the power of the situation.

Coercive Power

Influence someone because of social or physical intimidation; threat of punishment. Telemarketers Salespersons trying to hard sell Fear appeals (anti-smoking commercials)

Social Media Influencers as Human Brands: (Kie et. al 2020)

Influencer endorsements are likely to be interpreted as: Highly credible electronic Word Of Mouth (eWOM) rather than paid advertising. As they are often seamlessly woven into the daily narratives that influencers post on their Instagram accounts.

Article: "Influencer marketing: Social media influencers as human.." (p. 1 and 3-4)

Influencer marketing has become an integral part of retailers' digital marketing strategies because many retailers believe this new way of marketing is effective in translating into higher profits. In fact, an industry report (Linqia, 2019) indicated that 86% of brand marketers used influencer marketing in their advertising campaigns in 2017 and 92% of them found it effective. Nearly 89% of these marketers reported that their return on investment from influencer marketing was better than, or comparable to, other marketing channels in 2018 The market size of influencer marketing worldwide reached 148 million in 2019, which is about a 7.95% increase from 2018, and this number is expected to exceed US$373 million by 2027 Study 1: (USED EXCEL) Study 1 was designed to conduct a qualitative analysis of an open-ended survey to identify key SMI attributes that affect followers' tendency to perceive SMIs as a human brand and develop an attachment to them. Open-ended survey via Qualtrics and administered it on Amazon Mechanical Turk (MTurk) to those who are over 18, reside in the U.S., and use Instagram frequently. We chose Instagram as the principal context of our study because 78% of SMIs reported that it is their primary platform for brand collaborations The purposes of using this approach were to condense the extensive raw text data into meaningful categories and identify significant SMI attributes that affect followers feeling of attachment to SMIs. Specifically, the analytic induction process involved two researchers who interpreted the 395 individual excerpts vigilantly and assigned them to relevant categories. 1) SMIs' persona-driven attributes and 2) their content- driven attributes. To be more precise, eight noteworthy sub-categories emerged under each category: informativeness with an induction rate of 27.53%; inspiration (15.91%); enjoyability (15.40%); visual aes- thetics (11.87%); similarity (10.61%); physical attractiveness (9.85%); expertise (10.10%); and authenticity (6.06%). Among these sub- categories, inspiration, enjoyability, similarity, physical attractiveness, and authenticity were associated with SMIs' persona-related traits, whereas informativeness, visual aesthetics, and expertise were associ- ated with SMIs' content

What are norms?

Informal rules created by members in a society that govern behavior. How things are or How things should be Required for a society to function

The Beer Study: (Ariely & Levav)

Local brewery: posed as servers -tables of 2 or more (exclude solos) -offered free samples (special promo) 100 tables randomly assigned to 1 of 2 conditions: method of ordering 1) Independent: write down choice w/o talking (special condition) 2) Collective: say sequentially out loud 3 DVs: 1) Beer choice (1 of 4) & order of choice in the Collective condition 2) Liking of beer (satisfaction) on 0-10 Likert Scale 3) Do you wish you ordered a different sample? (regret) Y/N Ordering is impacted by the people around you.

The Mere Presence Effect: (Argo, Dahl and Manchanda 2005)

Looked at non-interactive social presence: the mere presence of other persons in a retail setting. Based on Social Impact Theory: as the SIZE of a social presence increases (# of people) -The group should have an increasing impact on one's emotions and behaviors -People generally engage in impression management behavior. Method: Ps sent to a university bookstore to evaluate the shopping experience & buy batteries Tested 2 IVS: 1) Impact of social size (1vs3 ppl) 2) Distance to the battery display -either 2 feet or 8 feet -did not engage with Ps

How marketers can utilize informational influence by:

Matching the influencer with the product is critical General celebrity endorsement: Celebrities "sell" products they have little/no expertise with

Reference Groups (3-Types)

Membership groups Avoidance groups Aspirational groups

The Power of Power: Milgram Studies

Milgram asked psychologists: "How many people will go all the way to 450 volts?" Prediction: 0.001 (0.1%) Participants were all men: aged 20-50 years, various occupations, incomplete degrees The researcher had both legitimate & expert power. Milgram summarized: "It is the extreme willingness of adults to go to almost any lengths on the command of an authority that constitutes the chief finding of the study."

Student Project Example: (Fall, 2019)

Mr. Clean made the workspace be cleaner at the end of the work day. Salience of cleaning in general + person watching you increased cleaning.

Music's Impact on Taste: (Adrian North, 201)

Participants: 125 men and 125 women, all under age 25 - to drink 4 oz of Chilean Cabernet (red) OR Chilean Chardonnay (white) - while listening to 1 of four types of music (which were pretested for perceptions), played briefly: 1. powerful and heavy: Carl Orff's cantata "Carmina Burana" 2. subtle and refined: Tchaikovsky's "Waltz of the Flowers" 3. mellow and soft: "Slow Breakdown," by Michael Brook 4. zingy and refreshing: Nouvelle Vague cover of Depeche Mode's "Just Can't Get Enough"

Follow-Up Studies: (Asch)

People tend to see/know the correct response, but tend to alter their answer when the group size grows. Specifically, 3 confederates or larger. Cohesiveness of the group: Ps only conformed when the group was unanimous: just one ally can lead to no conformity. If participants can give answers in private, conformity drops. *Interesting Note: The fellow students (confederates) in the study held no power, no sway, over participants, yet we see a fair amount of conformity.*

Scent's Effect on Memory: (Krishna, Lwin and Morrin, 2009)

People's recall of verbal information declines rapidly over time: Scent, however, does not Studies investigated effect of 2 scents: pine and tea tree (vs control) Items imbued with scent = pencils and tissues Scented products Unaided recall participants were asked to recall the brand name and any other information from the ad: -2 hours later and 2 weeks later 2 hrs: both scents helped memory, especially the PINE 2 weeks: both scents helped memory equally, compared to no scent Conclusion: the addition of a scent at encoding enhanced memory of a product for which scent is not usually an attribute

Social Proof / Consensus

Perceived value of an idea increases as the number of people supporting it increases. Usually, when a large # of people are doing something, it's the right thing to do. ex. laugh tracks, lines outside of night clubs when it is empty inside, "fastest growing" ads, hotel management example

Cheating Among Adults: Dan Ariely Ted Talk ..might want to watch this one.

Personal fudge factor: Most people are okay with cheating a little bit. Salience of morality 6-packs of Cokes vs cash; tokens Impact of in-group/out-group: Evoking social norms Comments about intuition & experimentation were noted.

Trait-Based Approach

Personality is the sum of a set of traits or qualities about a person, and these can be used to predict/explain consumer behavior. Trait: Predisposition/differences among individuals. Assessing personality traits is often done with questionnaires ranging from ~10 to > 300 Q's

Personality is a Moderator

Personality may temper or accentuate the effects of a given situation. Context vastly has an impact on this.

Article: "What marketers . . . Personality-Based marketing"

Personality science offers the chance to empathize with individuals, and engage them with the message, advertisement, or content in a way that is more likely to resonate with them. Digital footprints being used to make inferences about their personality. But as behavioral scientist Cass Sunstein has cautioned, there are sound uses for personal data on social media if handled ethically. We believe that includes personality marketing. Personality insights and other aspects of behavioral science offer opportunities to better connect with individuals, and if done ethically it can be beneficial for consumers and businesses alike. Personality marketing can create a better match for products, services or experiences. Facebook profiles researchers were able to identify empirical relationships between specific digital footprints and specific psychological traits. For example, certain correlations arose between liking a certain kind of music or food and specific personality traits. The more content, the more accurate the assessment. The scientific evidence is consistent and clear: one can increase the effectiveness of marketing messages and other types of persuasive communication by tailoring them to people's psychological profiles general guidelines of other behavioral science research of consumers, employees or patients. They include: transparency of intent and usage; abiding by privacy laws and regulations; and aligning researcher/marketer interests with those of respondents PUTTING PERSONALITY MARKETING IN ACTION: 1) Understand challenge or goal 2) Identify Cognitive biases and heuristics serve as barriers or drivers. 3) With strong understanding of customer journey, run personality test and combine with other data to reveal correlations. 4) Craft the messaging/ad to match different personality profiles while also considering the stage of the customer journey.

Avoidance Groups

Power: Coercive You study groups you dislike and make sure you avoid copying their clothing, behavior, etc. Can be as powerful, or more powerful, than your desires to please a positive group. Recall Pitt vs Carnegie Mellon

Membership Groups

Power: Referent, reward, coercive, expert Formal: Has outside structure, an institution w/ rules of conduct. Informal: No formal structure Can be people you just met!

Pre-Study: Reference Groups Implications

Reference group concepts have been used by advertisers in their effort to persuade consumers to purchase products and brands. -Portraying products being consumed in socially pleasant situations. -Use of prominent/attractive people endorsing products -Use of obvious group members as spokespersons in ads. Marketers/Advertisers make substantial use of potential reference group influence on consumer behavior in the development of their communications. Reference groups expose people to behavior and lifestyles, influence self-concept development, contribute to the formation of values and attitudes, and generate pressure for conformity to group norms.

(Bearden & Etzel 1982) When do groups influence consumption?

Researchers have proposed that reference groups influence on product and brand decisions is a function of 2 forms of conspicuousness: First: For reference groups to affect production decisions, must distinguish between them. -Necessities -Luxuries Second: Distinguish between -Publicly-consumed -Privately-consumed

Power of the Situation (STUDY): Darley & Batson (1973)

Scenario: While walking briskly to a meeting some distance across campus, John comes across a man slumped in a doorway, asking him for help. Will John offer help or continue walking. 3 Conditions (Random Assignment): 1) Late manipulation (they were in a hurry because they thought they were late for the practice sermon) 2) On time manipulation (they felt comfortably just on-time) 3) Ahead of schedule manipulation (they had plenty of time to walk across campus)

Asch (1952) - Why did they conform?

This shows the incredible power of situations to elicit behavior that most of us are sure we would never do - public conformity to the views expressed by others even when we privately hold entirely different views.

Conformity: Tipping / Norms

Tipping in America adds up to at least $40 billion a year. It keeps menu prices low, but it's a strange custom. How did Uber keep tipping at less than 20%? -Allows riders to decide on tips after the ride is over.

Article: "Whats the Value of a Like?"

To get the most out of social media efforts, companies must combine "push" and "pull" marketing, supporting likes with branded content. The mere act of endorsing a brand does not affect a customer's behavior or lead to increased purchasing. Supporting endorsements with branded content, can have a significant result. Make likes work for you Make endorsements meaningful Use "pull" marketing to find your best customers, and listen to them.

Interaction With A Retail Employee / The Abercrombie & Fitch Effect: (Otterbring, 2018)

Top 3 Priorities (Men): youth, health, attractiveness Top 3 Priorities (Women): status, wealth, dominance -Lay Theory: Physically imposing, attractive men are thought to have higher status and likely earn more money (halo effect) Men signal status when not dominant or tall by: -conspicuous consumption -opening their wallets $$ Otterbring's Prediction: Being greeted by a dominant, attractive male might trigger men to compete by signaling status (intra-sexual competition) A & Fitch Stores: many muscled six-pack-wielding employees probably haven't vanished from your mind. The brand seems to be built around the young and fit male employees who guide the customer toward a likely pricey fashion investment. Prior to study: effect of these men on male vs female shoppers was unclear... who would affect more Otterbring's method: -Large, global furniture retailer in Sweden -370 customers (68% female) -Either greeted by a tall physically imposing guy -Or no employees standing at the door greeting them -DV: After checkout, consumers answered survey & photo of receipts ------------------------- Otterbring Notes from study: Physical dominance isn't the same as physical attractiveness. Many high status product categories have certainly embraced the latter for ages: its the tallness and muscularity that truly matters from Abercrombie & Fitch effect to take place. Men don't buy beauty: They buy dominance. Implications for Marketers: Findings suggest that status-signaling luxury good brands may wish to hire: tall, athletic males.... rather than attractive women

What is conformity?

Two Types: Normative / Informational Tendency to align our beliefs, attitudes, and behaviors with those around us as a reaction to real or imagined social pressure. Men paying on the first date Personal hygiene Giving birthday gifts

Why is user-generated content (UGC) important?

UGC campaigns are a great way to collect creative material for marketing purposes, get photos of your products on the social Web, and drive sales and brand engagement because... Customers engage more with photos than with text reviews. Conversion rates, i.e. purchases, on products with customer photos can increase up to 30%. Lots of e-commerce customers end up not buying a product because they're not sure how the product is going to fit after they make the purchase.