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Consumer behavior outcomes and issues

symbolic - The groups we belong to and our sense of self can affect the symbols or external signs we use, consciously or unconsciously, to express our actual or desired identity. - For example, while skiing, Jason may wear a North Face parka and Bollé goggles to communicate his status as an experienced skier. - He might use his phone to snap a selfie and take home souvenirs, such as postcards and T-shirts, which symbolize his vacation. diffuse through market - after his trip he can tell others how it went which can influence their decisions and diffuse or spread to others Consumer Behavior, Ethics, and Social Responsibility - try to balance an immediate outcome against a longterm outcome or balance their own interests - ex. a consumer who steals may acquire something right away, but the long-term outcome is personally risky and also problem- atic to society. Many consumers are interested in whether products have been produced in an ethical manner, with ethically sourced inputs, as discussed in later chapters. - conflicting values between brand values and the consumer values.

Subliminal perception

the activation of sensory receptors by stimuli presented below the perceptual threshold. -our attention is directed squarely at the stimulus, but the stimulus is being presented subliminally. Subliminal stimuli are presented so quickly or are so degraded that the very act of consciously perceiving is not possible, even if you try hard.

Consumer Inferences

the conclusions that consumers draw or interpretations that they form based on the message. Such inferences may lead to conclusions such as (1) if brand A contains attribute 1 then it will also contain attribute 2 (congruent) or (2) if brand A contains attribute 1 then it will not contain attribute 2 (incongruent). Here, we look at the effect of brand names and symbols, product features and packaging, price, message wording, and retail atmospherics and display.

felt involvement

the consumer's experience of being motivated with respect to a product or service, or decisions and actions about these

Financial risk

the extent to which buying, using, or disposing of an offering is perceived to have the potential to create financial harm. -is higher if an offering is expensive, such as the cost of buying a home

Physical risk

the extent to which buying, using, or disposing of an offering is perceived to have the potential to create physical harm or harm one's safety. - For example, consumers often shy away from buying perishable groceries that have passed the stated expiration date because they are afraid of getting sick from eating spoiled food. - ppl dont really buy motor cycles cause might be more expensive

Social risk

the extent to which buying, using, or disposing of an offering is perceived to have the potential to do harm to one's social standing. ex. antismoking ad messages that conveyed the severe social disapproval risk of smoking cigarettes were more effective in influencing teens' intentions not to smoke than ad messages stressing the health consequences of smoking, such as disease. - not wearing crocs bc socially unnacceptable

perceived risk

the extent to which the consumer anticipates negative consequences of buying, using, or disposing of an offering to emerge and positive consequences to not emerge - the anticipation of outcomes and how certain or uncertain these are (uncertainty component), and the negativity of the outcomes and how severe these are (consequences component). Perceived risk is high when negative outcomes are likely or positive out- comes are unlikely.

Diaries

- Asking consumers to keep diaries can provide important insights into their behavior, including product purchasing and media usage. - Diaries often reveal how friends and family affect consumers' decisions about money, clothes, music, fast foods, videos, concerts, and so on. -show consumer behaviors through a day to day description of what they do - For example, several Federal Reserve Banks around the country recruit consumers each year to maintain a diary of financial transactions for several days. The purpose is to under- stand the use of cash, credit, debit, and electronic payment methods and identify changes in payment preferences over time.11

Needs for cognition and stimulation

- Consumers want to understand the world themselves and see some structure in it. Consumers with a high need for cognition (a need for understanding and mental stimulation) enjoy being involved in mentally taxing activities like reading and deeply processing information when making decisions. - People with a low need for cognition may prefer activities that require less thought, such as watching TV, and are less likely to actively process information during decision-making. In addition, consumers often need other kinds of stimulation. Those with a high optimum stimulation level enjoy a lot of sensory stimulation and tend to be involved in shopping and seeking brand information.

Photography and Pictures (Autodriving, Collage from Powerpoints)

- Some researchers use a technique in which they show pictures of experiences that consumers have had in order to help consumers remember and report experiences more completely. - Researchers may also ask consumers to draw or collect pictures that represent their thoughts and feelings about the topic at hand. - pictures and the meaning to describe how the consumer feels.

Color (Warm and cool colors and their effects)

- Warm colors generally encourage activity and excitement, whereas cool colors are more soothing and relaxing. - cool colors are more appropriate in places such as spas or doctors' offices, where it is desirable for consumers to feel calm or to spend time making deci-sions. Warm colors are more appropriate in environments such as health clubs and fast-food restaurants, where high levels of activity are desirable. Red appears to arouse an aggressive response and to elicit higher bid increments when used as the background color of an online auction screen

Focus Groups

- brings together small groups of consumers to discuss an issue or an offering. - Led by a trained moderator, participants express their opinions about a given product or topic, which can be particularly useful in identifying and testing new product ideas. - Focus groups provide qualitative insights into consumer attitudes as opposed to the quantitative (numerical) data resulting from surveys

Perceiving though hearing

- depends on intensity - consumers are more likely to notice loud music or voices and stark noises. - When the announcer in a radio or TV ad speaks more quickly, the faster pace disrupts consumers' processing of the information; a low- pitched voice speaking syllables at a faster-than-normal rate induces more positive ad and brand attitudes

Interviews

- involve direct contact with consumers. - Interviews are often more appropriate than focus groups when the topic is sensitive, embarrassing, confidential, or emotionally charged because its one on one. - They provide more in-depth data than surveys when the researcher wants to "pick consumers' brains."

Performance risk

- reflects uncertainty about whether the product or service will perform as expected. ex. Consumer purchases of certified pre-owned vehi-cles are hitting record levels because buyers know that these cars, SUVs, and pickups have been profes- sionally checked and come with the reassurance of a warranty.

Surveys

-a method of collecting information from a sample of consumers, usually by asking questions, to draw quantitative conclusions about a target population -Some ques- tions may be open-ended, with the consumer filling in the blanks; other questions may ask consumers to use a rating scale or check marks. -Surveys can be conducted in person, through the mail, over the phone, or by using the Web.

The psychological core

-source of knowledge or information upon which to base their decisions-- their motivation, ability, and opportunity; expo- sure, attention, perception, and comprehension; memory and knowledge; and attitudes about an offering

Appraisal theory

A theory of emotion that proposes that emotions are based on an individual's assessment of a situation or an outcome and its relevance to his or her goals. ex. appraisal theory proposes that we feel positive emotions like joy and pride when an outcome is consistent with our goals.

Values

Abstract, enduring beliefs about what is right/wrong, important, or good/bad. ex. if you see intellectual develop- ment as very important, you are likely to be motivated to engage in behaviors that are consistent with this value, such as pursuing a college degree.

Perceiving through vision

All of the following factors can combine to impact the beauty or aesthetic qualities of a product or package

ethical issues in consumer research

Although marketers rely heavily on consumer research in the development of successful goods and services, the conduct of this research raises important ethical issues. positive - Consumers generally have better acqui- sition, usage, and disposition experiences. -Meanwhile, marketers can learn to build stronger customer relationships by paying attention to consumer research. -As a consequence, fewer new products may fail, and more products of interest to consumers will be brought to market, making for a more efficient and effective marketplace. negative - These include the difficulty of conducting research in foreign countries, the high costs of conducting research, concerns about invasion of privacy, and the use of deceptive practices.

Approach-avoidance conflict

An inner struggle about acquiring or consuming an offering that fulfills one need but fails to fulfill another. - Teenagers may experience an approach-avoidance conflict in deciding whether to smoke cigarettes. Although they may believe that others will think they are cool for smoking (consistent with the need to belong and affiliate), they also know that smoking is bad for them (incompatible with the need for safety). - on a diet and want to eat a burger - want to go to sleep but have to do hw - going to school or hanging w friends

Approach-approach conflict

An inner struggle about which offering to acquire when each can satisfy an important but different need. ex. A consumer who is invited to a career-night func- tion (consistent with achievement needs) might experience an approach-approach conflict if he is invited to see a basketball game with friends (consistent with affiliation and stim- ulation needs) on the same evening. - when two things are equally desireable

Avoidance-avoidance conflict

An inner struggle about which offering to acquire when neither can satisfy an import- ant but different need. - such as going home alone right after a late meeting (not satisfying a need for safety) or waiting another hour until a friend can drive her home (not satisfying a need for convenience).

Characteristics of attention

Attention (1) is limited; (2) is selective; and (3) can be divided

Attention is selective

Because attention is limited, consumers need to select what to pay attention to and simultaneously what not to pay attention to. - can be affected by goals, or also with things we don't need to pay attention to anymore like things weve seen already.

embodiment

Connection between mind and body that influences and expresses consumer self control and behavior.

Attention is limited

Consumers cannot possibly attend to all stimuli in the environment, even if they would want to see everything. - However, consumers can attend to multiple stimuli (such as products on store shelves) if processing them is relatively automatic, well-practiced, and effortless

Types of Involvement

Enduring involvement - exists when we show interest in an offering or activity over a long period of time. - Car enthusiasts are intrinsically interested in cars and exhibit enduring involvement in them. - Enthusiasts engage in activities that reveal this interest(e.g., going to car shows, visiting car websites, watching YouTube videos about cars, and going to dealerships) Situational involvement - temporary interest in an offering, activity, or decision, often caused by situational circumstances. - For example, consumers who exhibit no enduring involvement with cars maybe involved in the car-buying process when they are in the market for a new car. After they buy the car, their involvement with new cars declines dramatically. Cognitive involvement - means that the consumer is interested in thinking about and processing information related to his other goal. The goal therefore includes learning about the offering. - A winter sports fan who is interested in learning all about curling and looks into the Olympic success of the Canadian men's and women's curling teams would be exhibiting cognitive involvement

zipping

Fast-for- warding through commercials on a program recorded earlier.

Perception and Consumer Behavior

The process of determining the properties of stimuli using vision, hearing, taste, smell, and touch.

selective exposure

In other words, consumers can and do actively seek out certain stimuli and avoid or resist others.

consumer opportunity

Independent of this, some- one may not take action or make decisions because of three key influences: (1) lack of time, (2) distraction, and (3) the complexity, amount, repetition, and control of information. a consumer may be highly motivated to work out and have sufficient money to join a health club (ability); however, when the local health club is being reno- vated, there is no opportunity to implement the intention to work out.

Marketing stimuli

Information about commercial offerings communicated either by the marketer (such as ads) or by nonmarketing sources (such as word-of-mouth). - what is being advertised

Symbolic needs

Need that relates to the meaning of our consumption behaviors to ourselves and to others. That is, how we perceive ourselves, how we are perceived by others, how we relate to others, and the esteem in which we are held by others. - Achievement, independence, and self-control are symbolic needs because they are connected with our sense of self. - Similarly, our need for uniqueness is symbolic because it drives consumption decisions about how we express our identity. For example, some consumers wear stylish Christian Louboutin shoes—with distinctive red soles—to express their social standing.36

Message comprehension

Once we have identified the source as a marketing message and determined what product or brand is involved, we can start to comprehend which message it brings us— to make sense out of it—on a number of levels.

Consistency with self-concept

Our mental view of who we are and the way you think others view you - When we buy clothing, we are often making a statement about some aspect of who we are—such as a professional, a student, or a sports fan. Inconsistency with self-concept can make you feel bad, as might happen when you try on clothing in what you thought was your size only to discover that you need a larger size. -When self-concept is threatened in this way, consumers will take action to repair their bruised ego (e.g., buying a product that improves the appearance of their hair). - can also affect brand loyalty if you feel that a brand defines who you are then you will become loyal to that brand.

Process of making decisions

Problem recognition - realizing we have an unfulfilled need (wanting to go on a vacation is fulfilling a need) information search - where he might go, how much the vacation might cost, and when he might travel. He also examined his financial situation. Elements of the psychological core are invoked in problem recognition and search. decision-making - high-effort decision, meaning that he is willing to invest a lot of time and to exert mental and emotional energy in making it -evaluating which option is the best and which option will fulfil his needs the best ex. of low effort decision is picking what toothpaste to buy post purchase evaluation - allows consumer to judge if the decision made was the correct one and whether that offering should be purchased again.

risk and involvement

Products and services vary in the extent to which they are personally relevant or involving. Perceived risk is a key determinant of this. Consumers are likely to be more involved in purchasing products such as homes, sports attire, life insurance, and computers than in purchasing picture frames, canned soup, or coffee because the former generate higher levels of performance, financial, safety, social, psychological, or time risk and can therefore have more significant personal consequences. For example, someone might buy the most expensive offering or choose a heavily advertised brand in the belief that this brand is of higher quality than other brands. When decision risk is high, consumers may be willing to consider less conventional alternatives, particularly when they do not trust tradi- tional products or practices. For example, consumers who believe that conventional medical treatments are too tech- nological or dehumanizing may be open to other healing alternatives.124

Perceiving through smell

Smell & physiological response/moods Smell produces both physiological and emotional responses. Some studies show that people can feel tense or relaxed depending on whether or not a scent is present and what it is Product trial - can entice consumers to try or buy a food product Liking - grapefruit aroma in its produce department to attract shoppers. Buying - Providing a pleasant-smell- ing environment can have a positive effect on shop- ping behavior by encouraging more attention to relevant stimuli that consumers encounter, and encouraging consumers to linger longer.

Psychological risk

The extent to which buying, using, or disposing of an offering is perceived to have the potential to harm one's sense of self and thus create negative emotions. ex. if you see yourself as an environ- mentalist, buying disposable diapers may be psychologically risky

Time risk

The extent to which buying, using, or disposing of the offering is perceived to have the potential to lead to loss of time. ex. if learning to use it is a lengthy process, or if it entails a long commitment period. things taking too long

consumer ability

The extent to which consumers have the required resources to make an outcome happen. ability to make something happen

Absolute threshold

The minimal level of stimulus intensity needed to detect a stimulus. the absolute threshold is the amount of inten-sity needed for a person to detect a difference between something and nothing. ex. Suppose you are driving on the highway and a billboard is in the distance. The absolute threshold is that point at which you can first see the bill- board.

Preattentive processing

The nonconscious processing of stimuli, such as in peripheral vision. - We devote just enough attention to an object in our peripheral vision to process something about it, but we are usually not aware that we are absorbing and processing that information.

Closure

The principle that individuals have a need to organize perceptions so that they form a meaningful whole. ex. For example, putting a well-known television ad on the radio can get consumers thinking about the message. The radio version of the ad is an incomplete stimulus, and the need for closure leads consumers to picture the visual parts of the ad.

Figure and ground

The principle that people interpret stimuli in the context of a background. -stimuli should be visible and background shouldn't distract from the stimuli The figure is well defined and in the forefront—the focal point of attention—whereas the ground is indefinite and in the background. Military personnel may use camouflage clothing to blend in with their background, and remain unnoticed. Advertisers should plan for important brand information to be the figure, and not let the background muddle the figure.

habituation

The process by which a stimulus loses its attention-getting abilities by virtue of its familiarity. - For example, think about the last time you purchased something new for your living room (such as a picture or vase). For the first few days, you prob- ably noticed the object every time you entered the room. Over time, however, you probably noticed the item less and less, as you became habituated to it - getting used to something

Perceptual organization

The process by which stimuli are organized into meaningful units.

factors influencing exposure

The process by which the consumer comes in physical contact with a stimulus. -position of an ad within a medium (youtube, tv, billboards) -product distribution (more stores carrying the product the more likely they are to buy) -shelf placement (where its placed in the store)

Source identification

The process of determining what the perceived stimulus actually is, that is, what category it belongs to. - helps identify things ex. When exposed to a page in a magazine, people almost auto- matically ask themselves the question: "Is it an ad, or something else?" And if it is an ad, they naturally try to determine the brand or product being advertised.

Preference for the whole

The tendency to perceive more value in a whole than in the combined parts that make up a whole, even if the parts have the same objective value as the whole. ex. you are more likely to make a $20 purchase if you have two $5 bills and a $10. In contrast, if you have a single $20 bill, your preference for the whole makes you less willing to spend it.140

zapping

Use of a remote control to switch channels during commercial breaks.

Perceiving through touch

Varying perceptions of what "feels good" - Consumers like some products because of their feel. Some consumers buy skin creams and baby products for their soothing effect on the skin. - In fact, consumers who have a high need for touch tend to like products that provide this opportunity. When considering products with material properties, such as clothing or carpeting, consumers prefer goods they can touch in stores more than products they only see and read about online or in catalogs

Attention can be divided

We can divide our attentional resources over time, by allocating some attention to one task and some to another, or by very rapidly switching attention between task - which can also distract us.

Goals and emotions

We feel good when we make sufficient progress toward goal attainment or have attained our goals (saved enough to buy a new bike) and feel bad when we make insufficient progress toward goal attainment or have failed to attain our goals ("spent too much on clothing again").

Social needs

are externally directed and relate to other individuals. Fulfilling these needs thus requires the presence or actions of other people. - For example, the need for status drives our desire to have others hold us in high regard; the need for support drives us to have others relieve us of our burdens; the need for mod- els reflects a wish to have others show us how to behave

Offering

a product, service, activity, experience, or idea offered by a marketing organization to consumers - you can acquire an offering, dispose of an offering, or use an offering

Personal needs

an individual's need for personal satisfaction unrelated to what others think or do - Our needs for sleep, novelty, control, and understanding, which involve only ourselves, can affect the usage of certain goods and services

Needs

an internal state of tension experienced when there is a discrepancy between the current and an ideal or desired physical or psychological state. - For example, at certain times of the day, your stomach begins to feel uncomfortable. You realize it is time to get something to eat, and you are motivated to direct your behavior toward certain outcomes (such as opening the refrigerator). - satisfying the needs

Make stimuli pleasant

attractive models, music, humor - people tend to approach thing that are pleasant to their eye.

High-effort Behavior

behavior that takes a considerable amount of effort ex. if you are motivated to buy a good car, you will research vehicles online, look at ads, visit dealerships, and so on. Likewise, if you are motivated to lose weight, you will buy low-fat foods, eat smaller portions, and exercise.

Types of goals

concrete - They are specific to a given behavior or action and determined by the situation at hand. If you are tired, one of your goals for the evening might be to go to bed before 9:00 PM. abstract - endure over a long period, such as being a good student or looking beautiful promotion focused - consumers are motivated to act in ways to achieve positive outcomes; that is, they focus on hopes, wants, and accomplishments prevention-focused goals - consumers are motivated to act in ways that avoid negative outcomes; they focus on responsibilities, safety, and guarding against risks.

Making Business Decisions Based on the Marketing Implications of Consumer Behavior

consumer research helps marketers to develop product-specific plans, as well as broader strategies for market segmentation, targeting, and positioning, and to make deci- sions about the components of the marketing mix consumer oriented strategy - strategies for target market Developing products - getting consumer input - branding -packaging, logo positioning - how offering should be positioned in consumer minds and where promotion and marketing communications - ads& marketing tactics where how who should advertise pricing - how much it should cost also depending on the target market distribution decisions - how products are distributed and sold to consumers in retail stores

The challenge of emotion regulation

engage in consumer behaviors to experience positive emotions and avoid experiencing neg- ative emotions. They thus actively regulate their moods or emotions. ex. feel depressed, you might have a goal of trying to make yourself feel better, perhaps by going to the movies or eating an ice cream cone. These goals explain why consumers who are feeling sad may think that "retail therapy"

Netnography

ethnographic research techniques adapted for the observation and analysis of consumers' online behavior and comments.20 The content consumers post on social media, brand forums, and websites, as well as data on brand likes and dislikes and consumers' experiences with offerings, all provide rich material for netnogrophy research. However, researchers are still learning to interpret the intentions, attitudes, and emotions inherent in messages and images on Twitter, Facebook, Instagram, Pinterest, and other social media. Tools such as automated content analysis and sophisticated data-mining tools are useful in extracting insights with the goal of fine-tuning marketing elements.21

Perceiving through taste

ex. the major challenge for marketers of low-calorie and low-fat products is to provide healthier foods that still taste good and that, per- haps more importantly, are perceived as such. - interestingly, tasting or sampling a product is the in-store marketing tactic that most influences consumer purchasing, even though stand- alone, in-store displays—perceived through vision—are the marketing tactic that shoppers notice the most

Motivation, Ability, and Opportunity

ex. vacation - take a lot of time, consume a lot of money, doesnt want to make bad choice SO motivation comes from wanting to learn about various vacation options. put other activities aside to give himself opportunity to learn. ability to determine which vacation will be best for him.

Experiments

experiments to determine whether certain marketing phenomena affect consumer behavior - For example, they might design an experiment to learn whether consumers' attitudes toward a brand are affected by the brand name as opposed to factors such as product features, package, color, logo, room temperature, or the consumer's mood.

Memory and Knowledge

he must organize knowledge from his research in his notes and and store in his memory.

Storytelling

in which consumers tell researchers stories about their experiences with a product, may show how they think and feel about a product. - At Patagonia, which markets outdoor clothing and accessories, researchers collect consumer stories about backpacking and other outdoor experiences for use in developing the company's catalogs and online product descriptions. Storytelling not only provides information relevant to the marketing of the product but also shows that Patagonia is in touch with its customers and values what they say. - a consumer's needs, feelings, and perceptions are revealed by the way he or she interprets what is depicted in the picture or scenario. - For example, researchers may show a picture of a woman at the entrance to a Zara store with a thought bubble above her head and ask consumers to write what they imagine the woman is thinking. Such stories can reveal what consumers think of a particular store, purchase situation, and so on.

affective involvement

interest in expending emotional energy and evoking deep feelings about an offering, activity, or decision - The consumer who listens to music to experience intense emotions or to relive a particular event in life is exhibiting strong affective involvement.

subjective comprehension

is the different or additional meaning consumers attach to the message, whether or not these meanings were intended

Exposure, Attention, Perception, and Comprehension

make sure he is exposed to and attends to any info relevant to his decisions. he will come across a lot of info he may not perceive. he will determine how to perceive the information he comes across--scam or not a scam-- with that also comes comprehension

Functional needs

motivate the search for products that solve consumption-related problems. pertain to performance of a product or service. - For example, you might consider buying a product like a car equipped with a backup camera because it appeals to your safety needs (a functional, nonsocial need). - buying shampoo to satisfy the function of cleaning

Hedonic needs

needs that relate to sensory pleasure - needs for sensory stimulation, cognitive stimulation, and novelty (nonsocial hedonic needs) and needs for reinforcement, sex, and play (social hedonic needs) - satisfying guilty pleasures - consumers exposed to sexual marketing cues tend to buy sense-rewarding products, like snacks, more quickly than when such cues are not present

Observations and Ethnographic Research

observations researchers observe consumers to gain insight into potentially effective product, promotion, price, and distribution decisions. As an example, VF Corporation, which mar- kets Wrangler and Lee jeans, learned a lot by sending its researchers to observe women shoppers in a depart- ment store. The observers noticed that women tried on multiple sizes for each jean style they wanted to buy. Why? Because customers didn't believe they could rely on the labeled sizes. Based on this observation, VF decided to change its size labels and launch an online campaign to help women choose the most flattering jean sizes and styles. ethnographic research in which researchers interview and observe (and per- haps videotape) how consumers behave in real-world surroundings. (Ethnographic research can also be applied to Internet activities, as discussed later in this appendix.) Speck, a store located in the high-tech cen- ter of California's Silicon Valley, is not in business to make sales of iPhones and other electronic gadgets.

miscomprehension

occurs when consumers inaccurately construe the meaning contained in a message, that is, when their subjective comprehension is incorrect. - not understanding a tv ad

Motivated Reasoning

process information in a biased way so that they can obtain the particular conclusion they want to reach. -One example of motivated reasoning is a confirmation bias when consumers seek information that supports their conclusion rather than seeking accurate information. -For example, if your goal is to lose weight, and you see an ad for a diet product, you might process the ad in a biased way to convince yourself that the product will work for you.

Make stimuli easy-to-process

prominent stimuli - The intensity of stimuli that causes them to stand out relative to the environment. ex. consumers more likely may notice larger or longer ads than smaller shorter ones. concrete stimuli -the extent to which a stimulus is capable of being imagined. - Showing a mug of coffee in an ad with the handle on the right makes it easy for right- handed people to mentally visualize picking it up limited number of competing stimli - more likely to notice a billboard while driving down an empty road then in a city filled with a bunch of billboards contrast with competing stimuli -make it stand out - Color newspaper ads stand out because they are surrounded by black and white, just as black-and-white TV ads stand out during TV shows broadcast in color.

Grouping

refers to the fact that we often group stimuli to form a unified picture or impression, making it easier to process them. - in a store, consumers may perceive a table setting as elegant when the nap- kins, napkin holders, silverware, dishes, and serving bowls are cleverly grouped.

The consumer's culture

refers to the typical or expected behaviors, norms, and ideas that characterize a group of people had certain feelings, perceptions, and attitudes because of the unique combination of groups to which he belongs and the influence they have on his values, personality, and lifestyle reference groups- people whose values he shares and whose opinions who respects bc those people are similar to him - may want to emulate behavior of them and listen to their advice -also might make us want to behave a certain way Diversity Influences - many regional, ethnic, and religious groups that directly or indirectly affect the decisions he makes his age, gender, and educational background may all affect his impressions of what constitutes a good vacation household and social class influences - a member of the upper middle class and lives with his parents, these household and social class influences may affect his decision to go to a luxurious European ski resort with friends rather than join his family at a rustic ski area near home values personality and lifestyle - his beliefs, his personality, and his activities, interests, and opinions

Objective comprehension

refers to whether the meaning that consumers take from a message is consistent with what the message actually stated.

field experiment

reveals whether an offering is likely to sell in a given market and which marketing-mix elements most effectively enhance sales. - -EX> Suppose marketers want to determine how much advertising support to give to a new product. They could select two test markets of a similar size and demographic composition and spend a different amount of money on advertising in each market. By observing product sales in the two markets over a set period, the marketers would be able to tell whether the added investment in advertising had a significant sales impact.

iSize/shape/lettering/image location on package

shape - Consumers perceive that packages in eye-catching shapes contain more of a product - consumers may purchase based on size and shape depending on what they need lettering - the size and style of the lettering on a product or in an ad can attract attention and support brand recognition and image - ex. coca colas lettering in its logo is eyecatching and easily identifieable image location on package - images located near the package top, on the left side, or at top-left add to the perception of a product as "lighter." On pack- ages of products where "lighter" is perceived positively— such as healthy snacks—the images should be placed in these "lighter" locations.65

Personal relevance

something that has a direct bearing on the self and has potentially significant consequences or implications for our lives - For example, if you learn that your cellphone's battery is being recalled because it can overheat and cause burns, you will probably find this issue to be personally relevant. - consequences for yourself

Differential threshold

the intensity difference needed between two stimuli before they are perceived to be different. For example, when you get your eyes checked, the eye doctor may show you a card with rows of letters, with the rows being of an increasingly smaller type size. If you can distinguish two letters on the same line, then the letters have crossed your differential threshold for visual perception.

Acquisition

the process by which a consumer comes to own an offering - buy, steal, borrow, renting, trading, sharing

Disposition

the process by which a consumer discards an offering -donating, selling, throwing away, lend to others, finding a new use

Usage

the process by which a consumer uses an offering -Whether and why we use certain products can symbolize something about who we are, what we value, and what we believe.

Conjoint Analysis

to determine the relative importance and appeal of different levels of an offering's attributes. - To start, researchers identify the attributes of the offering, such as package size, specific product features, and price points. - Next, they determine the levels to be tested for each attribute (e.g., large or small size). -Then they ask consumers to react to a series of product concepts that combine these attributes in different ways. ex. researchers might ask how likely consumers are to buy a large container of liquid Tide laundry detergent that has added stain removal power and costs $10.75; they might also ask how likely consumers are to buy a small container of Tide that lacks added stain removal power and costs $8.50. By analyzing the responses to different combinations, the researchers can see how important each attribute

Make stimuli surprising

using novelty - something with packaging because its new or unique and it stands out from other stimuli unexpectedness - something that is different from what we are used to, making us curious and wanting to analyze further. using a puzzle - Visual rhymes, antitheses, metaphors, and puns are puzzles that attract attention in ads, because they require resolution

Sonic identity

using specific music or sounds to identify the brand - jingles

Goal setting and goal pursuit

what are the goals i want to pursue and why do i want to pursue them ex. loosing weight - Consumer behavior is a continuous cycle of setting goals, pursuing them, determining suc- cess and failure of goal pursuit, and adapting the goals, all with implications for marketing.49 When consumers fail to achieve everyday subgoals (such as not recycling a newspaper), they may be less committed to long-term end-goals (such as sustaining the environment) and have weaker future intentions to act in ways that enhance qual- ity of life

Make stimuli personally relevant

when they appeal to our needs values and goals. ex. if you are hungry you are more likely to focus on food ads

Focal and nonfocal attention

when we focus on a stimulus (focal attention) while simultaneously being exposed to other stimuli (nonfocal attention) ex. can we process info from a roadside billboard if we are focused on the road


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CH. 13: Return, Risk, and the Security Market Line

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