Marketing Exam 1

8. Look up information on aging in the U.S. at the census Website www.census.gov. What changes are taking place in the age of the population in general and in racial, ethnic and gender groups? For what level of customer analysis will this information be useful?

Population is going to even out and shrink More people are older.

Offer three examples of how a change in a marketing strategy led to changes in your affect, cognition, behavior and environment.

10 for $10 deal on microwavable meals pulled me to purchase a product I usually would. Chips placed at the front of the store on Superbowl Sunday which attracts me to purchase chips.

1. Explain customer affect and cognition, behavior and environment. Why do marketers need to consider all three in developing marketing strategies?

Affect = customer feelings about stimuli & events Cognition = customer thinking Customer Behavior =Physical actions of customers directly observed & measured Is overt behavior, not mental behavior (thinking) that cannot be observed directly E.g. trip to the mall = overt behavior. Deciding to go to mall (or not), is mental behavior Marketers are interested in customer behavior, because through customer behavior marketers make sales & profits Marketers therefore need to analyze, understand & influence customer behavior Customer Environment= Everything external to customers that influence the way they think, feel and do Includes social stimuli & physical stimuli Environment is important to marketers because it is the environment in which stimuli are placed to influence customers (how customers think, feel & do) Any of the elements can cause change in any of the others, or be influenced by any of the othersExamples....This is called a reciprocal systemFive implications of a reciprocal system:To analyze customers, we must consider all three elements and the relationships between themAny of the three elements can be a starting point for analysis of customersBecause reciprocal systems are dynamic, customers change continuouslyReciprocity implies different levels of customer analysis - individual customer, target market, industry, societyMarketing strategies are dependent on customer research and analysis

3. How are cognitive and affective systems different? How are they interrelated?

Affective Responses: Emotions, Feelings, Moods, Evaluations Cognitive Responses: Knowledge, Meanings, Beliefs. cognitive responses help make up the affective system while affective responses help make up the cognitive system.

Discuss how the marketer of casual clothing for men or women can use customers' means-end chains and involvement to understand the customer-product relationship.

Atributes to functional consequences to psychosocial consequences to values. Attributes and functional consequences make up product knowledge. Psychosocial consequences and values make up self-knowledge. Makes the connection between customers' product knowledge and knowledge about self Level of involvement the customer experience is determined by: Importance of the ends (values) Strength of connection between product knowledge and self knowledge If attributes only lead to functional consequences then involvement would be low Affective system responds to means-end knowledge activated in the situation

List some factors that could affect the inferences formed during comprehension of ads for packaged foods and medical services. Give examples of marketing strategies you would recommend to influence the inferences customers form.

Beliefs or knowledge that are not based on information directly present in the environment, but result from deeper, more elaborate comprehension. Inferences are heavily influenced by customers' existing knowledge (in memory) that is activated during comprehension. Customers combine attributes of product with existing knowledge (about functional, psychosocial & value consequences) for deeper, more elaborate comprehension to make inferences about consequences of product attributes (i.e. to produce means-end chains) Customers use inferences to: "Fill in the blanks" when product information is missing or incomplete Can be to marketers' advantage or disadvantage Make inferences about abstract attributes, consequences and values of products based on attribute cues E.g. - The service is expensive, therefore the quality should be good

2. What is cognition? Give an example that illustrates the distinction between information (stimuli) and cognition that represents the information.

Cognition = mental / thinking responsesSomething people have (She knows where the pet store is / you think your hairstyle is modern / he believes drinking milk is healthyNot felt in the body. interpret, make sense of and understand personal experiences by creating symbolic, subjective meanings to represent personal interpretations of encountered stimuliMeanings created of physical stimuli (cell phone navigates easily), social stimuli (the fireman was helpful), affective responses (I love ice cream), symbolic meanings (driving this car reflects success), sensations (sound of opening a soft-drink can), behaviors (how to order a meal in a restaurant)

Analyze the possible meanings of mouthwash or deodorant in terms of positive (perceived benefits) and negative (perceived risks) consequences of use. Why are both types of meaning important?

Cognitive & affective elements Positive benefits Desirable consequences customers seek Customers often think of products as bundles of benefits rather than bundles of attributes Used for benefit segmentation Negative risks Undesirable consequences customers want to avoid Customers trade benefits against risks in buying decision Positive Benefit: You don't smell. Negative Risk: You smell. Important because it will determine purchasing habits of customer.

2. Explain the relationship between customer environments and marketing strategy?

Consists of target market & marketing mix designed to speak to the selected target marketTo decide on a target market the marketer has to:Segment customersDecide on target marketing strategyDecide on how the product / brand is going to be positioned in the mind (affect & cognition) of customersMarketing mix = set of stimuli placed in customer environments designed to influence customer affect & cognition (position product / brand) and influence customer behaviorTherefore, there is interaction between customer affect & cognition, customer behavior, customer environments and marketing strategy - The Wheel of Customer Analysis

. Why must marketing strategies ultimately influence overt customer behavior to be successful?

E.g. trip to the mall = overt behavior. Deciding to go to mall (or not), is mental behaviorMarketers are interested in customer behavior, because through customer behavior marketers make sales & profitsMarketers therefore need to analyze, understand & influence customer behavior

Discuss how the interpretation process of exposure, attention and comprehension can influence customers' purchase decisions.

EXPOSURE - A customer's contact with information in the environment - Generally, the more the better ATTENTION is focusing on information that is relevant to important goals and values. Comprehension: The cognitive processes involved in interpreting and understanding concepts, events, objects, and persons in the environment

Review the differences in knowledge and meanings produced by more and less elaborate comprehension processes. When should marketing activities encourage or discourage elaboration of knowledge and meaning?

Elaboration. Few (less elaborate) or many meanings (more elaborate) - fewer meanings (less complex knowledge structures) require less cognitive effort & capacity and conscious control. More meanings (more complex knowledge structures) requires more cognitive effort & capacity and conscious control Memorability. Weaker or stronger memories - depends on previous 3. Weaker memories = more automatic & unconscious processing, shallow comprehension, creating less complex knowledge structures Therefore to create stronger comprehension of their products, marketers need to induce more conscious thought & control by customers, deeper comprehension for customers to create more complex knowledge structures about marketers' products

1. Describe the four broad types of affective responses produced by the affective system and give an example of each

Emotions, Specific Feelings, Moods, Evaluations, Examples of each. Joy, Warmth, Alert,Good

Consider an example of a marketing strategy that you think might result in some customer miscomprehension. Discuss why this miscomprehension occurs and what marketers can do to reduce the chances of miscomprehension.

Factors Influencing Comprehension: Knowledge in memory Influence the ability to comprehend. If existing knowledge structures are comprehensive (expert) = potential for good comprehension. If not (novice) = not good comprehension potential. Cleaning product - Better for marketer to focus on results than technical detail Involvement Influence the motivation to comprehend. More involvement = better comprehension Reason for focus on customer involvement through social media Exposure environment Influence the opportunity to comprehend. Less time pressure, less distractions & more positive affective states = better comprehension Marketers should design this into strategy - e.g. retail layout & design; salesperson making an appointment with customer Cleaning product example. Better to focus on results. If strategy focuses on technical detail, customer could have miscomprehension about the product. They can increase involvement to have better comprehension. Create social media channels.

4. Consider a product such as an automobile or perfume. Describe at least three types of meanings that customers might construct to represent various aspects of the product. Discuss how marketers might try to influence each meaning.

Ford F-150. Truck Bed. Off road ability. Gas powered. Associative networks Organize and link many types of knowledge together General knowledge Episodic knowledge about past events (shopping at Wilsons) Semantic knowledge about features (status brand) Knowledge of affective responses (feeling after run) Interpretations of affective feelings (relaxed, proud) Knowledge about appropriate behaviors (wear cushioned socks) Semantic knowledge about consequences of these behaviors (to avoid sore knees) Different parts of knowledge network can be activated at different times, but activated knowledge acts as a mental frame to structure customer interpretation and integration processes at that time

8. Contrast your general and procedural knowledge about a topic of your choice (you should know something about the topic - e.g. movies, football, college). Discuss how your general and procedural knowledge is related. Why might marketers be interested in each type of your knowledge?

General knowledge about the environment and behaviors Stored as links or connections between two concepts "iPhones - expensive" Procedural knowledge about how to do things "If ... then" "If you are dissatisfied in the restaurant, then do not leave a tip" Experience based Acquired over lifetime Specific to particular situations Schemas Contains mostly episodic and semantic general knowledge - Nike Running Shoes example Scripts Organized networks of procedural knowledge Sequential E.g. Eating at fast food restaurant Enter restaurant - step up to counter - give order to counter attendant - pay and wait for food - find table - sit down and eat Interested so they know what content to produce.

Describe the difference between accidental and intentional exposure to marketing information. Identify a product for which each type of exposure is most common, and discuss implications for developing effective marketing strategies.

Intentional exposure occurs when customers purposefully search for information relevant to a goal or problem they have. Low incidence. Accidental exposure occurs when customers unexpectedly encounter marketing information in their environments. Most exposure happens this way as customers move through their environments. Level of involvement here determines to what extend customer is going to attend to the stimulus and comprehend it. Luxury Car is Intentional Cell Phone Commercial is accidental Effective marketing strategies can get a person to intentionally seek exposure. Selected exposure finds customers in their environments and can gain their attention.

Discuss the different types of knowledge and meanings that "shallow" and "deep" comprehension processes create. Can you relate these differences to different segments of customers for the same product?

Level. More concrete (shallow) or more abstract (deeper) - shallow comprehension produce more concrete, tangible meanings. More on attribute level (e.g. this pen is red, made of plastic). Deep comprehension produce more abstract meanings that are more symbolic, more subjective and less tangible. More on the consequences level (e.g. this dress makes me feel slim). Yes you can. Peanut butter. This Some customers might think it tastes good, while moms buy it to be good moms.

Discuss how interpretation processes (attention and comprehension) affect customers' ability to recall marketing information. Illustrate your points with marketing examples.

Low affective arousal reduces the amount and intensity of attention High affective arousal narrows consumer focus and makes attention more selective Customer in good mood is more likely to notice positive aspects of the environment Motivational state that guides the selection of stimuli for focal attention and comprehension Depends on activated means-end chains, related affective responses & level of arousal Knowledge in memory Influence the ability to comprehend. If existing knowledge structures are comprehensive (expert) = potential for good comprehension. If not (novice) = not good comprehension potential. Cleaning product - Better for marketer to focus on results than technical detail Involvement Influence the motivation to comprehend. More involvement = better comprehension Reason for focus on customer involvement through social media Exposure environment Influence the opportunity to comprehend. Less time pressure, less distractions & more positive affective states = better comprehension Marketers should design this into strategy - e.g. retail layout & design; salesperson making an appointment with customer Example. Luxury Car.

7. Think of a purchase decision you recently made. Using this purchase decision as an example, list the main influence factors, your affective responses, your cognitions and your behaviors. Describe the reciprocal interactions that occurred among some of these factors. Describe how the three main cognitive processes (interpretation, integration and retrieval) occurred in your decision.

Luxury Car

6. What stores do you know about that try to create a certain affective mood for customers? What things does the store do to create that mood? How does that mood interact and influence customers' cognitions (beliefs and meanings)? How might that mood influence customer behavior within the store, including purchase behavior?

Luxury Car Dealership.

In considering your answer to question 6, do you think there was anything unethical in the marketing strategies?

NO

Give an example of automatic attention and contrast it with an example of controlled attention. What implications does this distinction have for marketing strategy?

Preconscious attention is the highly automatic, largely unconscious selection of certain stimuli for simple cognitive processing Walking up stairs is preconscious. It is automatic. Focal attention is a controlled, conscious level of attention that focuses cognitive processes on relevant or prominent stimuli in the environment Walking a mile down the road is controlled. Many different thought out ways to get there. Depending on the product, marketers have implications for this strategy because marketers want their products to become automatic in the minds of consumers. When faced with controlled attention, marketers want their products to hold the attention of the customer.

Select a product category and identify examples of product forms, brands and models. Describe some of the attributes, positive benefits and negative risks, and value meanings for each of these levels

Product Category: Coffee Product Form: Ground, Instant Product Brand: Folgers, Maxwell House Model: Features, 1 pound can, 8 ounce jar. Attributes: Price, Design Positive Benefits: Long Lasting Negative Risks: Could Taste Wrong Value Meanings: Broad Life Goals: Live Long Life

Identify a recent brand extension and discuss how exposure, attention and comprehension processes can influence the effectiveness of that brand extension.

Starbucks coming out with a coffee maker.

Define the concept of involvement and illustrate it by discussing products that, for you, have different levels of involvement

The perceived importance or personal relevance of an object, event, or activity - the higher the perceived importance the stronger the customer's personal relationship with the product Is a motivational state that directs cognitive & affective responses and behaviors Cognitive (e.g. means-end knowledge) and affective (e.g. product evaluations) aspects Higher involvement = stronger affective responses - therefore full range from evaluations to emotions are available Consequences = more time & effort spent in generating alternatives, searching for information, interpreting & integrating information to make a choice Felt involvement = customers only experience involvement at certain times / occasions (when means-end knowledge is activated) Buying a luxury car has more involvement than buying toothpaste.

5. Give an example of how a marketing strategy could cause spreading activation within a customer's associative network of product knowledge

They can add a new meaning and belief to an existing knowledge strucuture. For example, with Nike Running Shoes, they Can associate the cost with the location buy advertising that they can buy nike running shoes at Wilson Sporting Goods for $94.

What are the implications of viewing customer processes (cognition, affect, behavior, environments) as a reciprocal system?

To analyze customers, we must consider all three elements and the relationships between themAny of the three elements can be a starting point for analysis of customersBecause reciprocal systems are dynamic, customers change continuouslyReciprocity implies different levels of customer analysis - individual customer, target market, industry, societyMarketing strategies are dependent on customer research and analysis

5. Explain four levels at which customer analysis can be conducted. Offer one example of how customer analysis could aid marketers at each level.

Wheel of Customer Analysis can be used to analyze customers at different levelsLet us use an example of health & fitness:SocietiesAs medical research about health and fitness became more prominent in the societal customer environment, it influenced societal cognition & affect about living healthier, which influenced society in general to behave differently by exercising more and eating healthier. Marketers developed marketing strategies for products & services to facilitate exercise and healthier eating for customers. This all interacted to change society.IndustriesOn the industry level the societal changes in environment, affect, cognition & behavior led the soft drink industry to introduce healthier beverages (a marketing strategy change) because sales of existing (unhealthy) products decreasedOpportunities for new products and threats to existing productsCan change an industry's profile as incumbent firms fail or adapt, or new firms enter the industry Market SegmentsMarkets become more fragmentedThe societal changes on health and fitness crystalized new market segments for marketers (exercisers, healthy eaters)Reebok researched wants and preferences (cognition & affect) of urban youths interested in exercising (target market), for good-looking, moderately priced, long-wearing shoes for regular guys who play basketball (behavior) on outdoor courts (environment) and developed a successful marketing strategyIndividual CustomersA restaurant can track the purchasing behavior of an individual customer, who regularly dines at its Norman restaurant creating a ticket for two (environment) and draw conclusions about his/her affect and cognition about health & wellness and life stage. This is used to target promotions to the customer related to the inferred affect & cognition.Someone who regularly buys ice cream may also respond to sales promotions for burgers, fries, milkshakesSomeone who regularly buys bottled water may also respond to sales promotions for salads, low calorie menu items.Creating a ticket for two may mean the customer is young (without kids) or older (empty nester). More information is needed to establish the actual situation before sales promotions can be directed at the customer addressing this characteristic

Go to https://usa.visa.com/pay-with-visa/find-card/ and describe the different cards VISA has available. Are some of these more appropriate than others for the student market? Do you think these cards would fit into a single knowledge structure about cards in general, or would they each need to be a separate schema? Do you think customers need separate scripts to use each type of card?

Yes some are more appropriate than others. They would need to be in separate schemas. They need separate scripts to use each card.