Marketing Quiz 2
Sleep improves performance: -across 3 different groups, problem solving performance was best by participants who "slept on it"
% of problems solved is much higher during sleep vs. awake (day) and awake (night)
Parole boards: -judges change in behavior based on when they have a meal break
(as time goes on, their rulings are less favorable, until they have a meal break) à hangery
Why should we study new products: -what percentage of new products fail? -studying reduces uncertainty associated with ___ -There are cost savings by ___
-67-80% fail -new products and improves success -screening out bad ideas at each stage
3 challenges of creativity
-Delimiting the problem too narrowly (thinking only of self perspective) -Being evaluated and scrutinized by others (afraid to be creative) -Breaking automatic associations, routines, and habits EX: Spoon
3 ways to measure creativity
-Fluency -Flexibility -Originality
HOW DO WE MAKE SURE CONSUMERS' CHOICES ARE IN THEIR BEST INTEREST, OR WILL MORE EFFICIENTLY MAKE THEIR OWN AND OTHERS' LIVES BETTER? -4 strategies
-Government -Economics -Promotions -Nudges
How to create a positive cycle
-Reminding people that they often perform environmentally friendly behaviors -makes them think that they are more environmentally conscious... -which makes them more inclined to perform environmentally friendly behaviors. ex: put signs by the stairs to remind people to save energy
Positive cueing Many things people do are good for the environment, but...
-They do them for other reasons (e.g., riding the bus to save money, or not littering to avoid judgment). -They do them so often they don't register (e.g., recycling, turning the lights off).
Creativity and productivity: -William Shakespheare: -Ludwig Beethoven -Thomas Edision -Scientists
-William Shakespheare: wrote "problem plays" that are rarely performed today. -Ludwig Beethoven: produced many subpar compositions. -Thomas Edision: invented many useless contraptions. The developmental costs for one failed device alone equaled all the profits he had earned from the electric light bulb. -Scientists: researchers with the highest number of high-impact papers also tend to have the highest number of low-impact papers.
Same test again, but with a twist: students told the proctor their score. The proctor gave them plastic tokens. Students would then walk to another experimenter 12 feet away and exchange the tokens for cash. control group cash group claimed to solve token group claimed to solve
-control group: 3.5 questions -cash group claimed to solve: 6.2 -token group claimed to solve: 9.4 questions Switching from cash to an equivalent nonmonetary currency increased cheating! *cash people cheated, but tokens had more people cheated (doesn't seem as bad)
Which causes for death is more frequent
-falling aircraft part vs. shark attacks -dibetes vs. homicide -tornado vs. lightning -car accidents vs. stomach cancer *If it makes the news, it seems that more people are dying from this: (but this is not always true)
How marketing can help with nudges: -Marketing has a lot of ___ -Marketing can guide ___
-influence (it's involved with just about everything we do, eat, water, use or otherwise consume) -guide choices
Why is the average kWh go down over the years with washing machines, dishwashers...yet electricity has increased
-people are just getting more appliances with increases kWH
People make undesirable, suboptimal choices because:
-people aren't strictly rational -people are overconfident -people are stuck in the present
DEPRESSED INDIVIDUALS WITH LOW SELF ESTEEM -More accurate recall of -More "even handed" in -More congruence between
-positive and negative information -attributions of self-responsibility. -self evaluations and appraisals by others
Time and regret -Short term -Long term
-short term: When asked about what they regret most in the past week, 53% of people regret actions more. -long term: When asked about what they regret most in their lifetimes, only 18% of people regret actions more.
insight is something that appears suddenly in problem-solving (a ha moment)..more likely to occur in the morning 3 areas where sleep can help
-sleep facilitates discovering hidden structures needed to solve problems -sleep is an effective study break -Sleep helps consolidate information
3. Too little market attractiveness
-tandem toilet (2 in one) -grip for wine glass -car exhaust grill -oreo spoon
Do people like novelty? Creative idea expression is negatively related _____. People who are instructed to express creative solutions during an interaction are viewed as ____. People prefer ___
-to perceptions of leadership potential -having lower leadership potential (wild and unpredictable) People prefer the status quo
Questions to consider
-what don't people behave honestly? What gets in the way? -How can we help people with good intentions act according to them?
5 techniques of neutralization
1. Denial of personal responsibility (blaming others) 2. Denial of injury (making the transgression smaller) *It's just one light bulb 3. Denial of victim (the transgresses are not victims) *if they priced fairly, I wouldn't have to steal 4. Condemning the condemners *like they've never done anything wrong 5. Appeal to higher loyalties *I did it to prove a point or I need to be able to afford to feed my family
Why do new products fail? (5)
1. Insignificant point of difference 2. Incomplete market and product definition 3. Too little market attractiveness 4. Poor execution of the marketing mix 5. Poor product quality or sensitivity
Who experiences more REGRET? An investor who sells his shares and discovers later he would have been better off by $1200 if he had not sold. An investor who keeps his shares and discovers later he would have been better off by $1200 if he had sold.
1st choice: (let go of something, you can pin point when the decision was made) -decision was made and they feel more regret -People confer greater regret to the investor who takes action by selling shares than to the one who does nothing, despite the fact that both investors are equally worse off
Ethical products: -30% of consumers say they would purchase ethical products...How many actually do?
3%
People were given a 50-question, multiple-choice quiz. They would take the quiz, then transfer their answers from a workbook to a scantron sheet. People received $0.10 for each correct answer -What was the average score No cheating permitted (no answers on the workbook). -When students give both scantrons and workbooks (with filled in answers) to a proctor (cheating on 3.6 questions). -When students shred workbooks (with filled in answers) and give scantrons to a proctor (cheating on 7.3 questions).
32.6 36.2 39.9 Not a large increase in the average scores if answers are given. If they can get rid of the evidence, there scores will increase (but still hesitation)
The post-it note was a new use for a failed adhesive. It was extremely successful. It resulted in 4 new product lines, hundreds of million of dollars in revenue, and rescued 3M from financial ruin. Was the inventor a creative genius, or did 3M create an environment that stimulated creativity - or both
A single creative product can reflect the efforts of a single individual and a context that influences the creative process.
Imagine you go on a hike with some friends, and you get lost in the woods. You're running low on food and water. Which would you rather have more of: (Does when I ask you matter)
Before exercise: 62% want water after exercise: 93% want water Visceral States
How many murders were there last year in Michigan or Detroit
Can't be more murders in Detroit than Michigan -However, the word "Detroit" evokes a more violent image than the word "Michigan"
Cheating when it comes to money
Cheating is a lot easier when it's step removed from money -When we are taking cash, it is obvious to ourselves that we are stealing. When we are taking something else, it is easier for us to tell ourselves some distorted story that what we're doing is okay.
Novelty
Creativity and innovation in marketing contexts demands more than novelty (new), both must also be useful
Who doesn't hold biased self-assessments?
DEPRESSED INDIVIDUALS WITH LOW SELF ESTEEM
What does the space alien test show? *Draw a space alien that is unlike any earth creature you have ever seen
Despite the instructions, people draw figures that include human features (e.g., bilateral symmetry)
1. Insignificant point of difference
DinKlip cup holder (does not provide a good enough new solution)
Availability Heuristic ---n- 212 words ---st ---ing 79 words
EX: Easier to come up with ing, the first one can end in ing too
Performance Appraisals: -
EX: Performance Appraisals: more weight on performance in last 3 weeks of an evaluation period than the previous 24 weeks
What do you regret? -Do you regret the things that you have done? -Do you regret things that you haven't done?
Generally, people who list regrets list more regrets about things they wish they did but didn't do (75%) than regrets about the things they did but wished they hadn't (25%)
-Originality
How novel, unusual, or unique your suggestions are
Why is hand sanitizer use by day higher with green products vs. regular products
However, people don't believe that green products don't work as well (use more green hand sanitizer vs. regular because they feel like they need to use more for it to work as well)
What should Google do to not become IBM or Microsoft
IBM is very business oriented, but Google inspires innovation. Google is more open to different types of employees
2. Incomplete market and product definition
It's confusing (body soxs)
How unethical are people?
Judgements of behavior are extremely malleable (different situations will vary)
You have a one-year-old child. Your child has a 10 in 10,000 chance of dying from the flu without a vaccination. Would you vaccinate your child if the vaccine had a 6 in 10,000 chance of causing death?
Most people said no The safer option is to not vaccinate if they are scared..
Scope Heuristics: A certain number of migrating birds die each year by drowning in uncovered oil ponds, which the birds mistake for bodies of water. Covering the ponds with nets could prevent these deaths. How much money would you be WILLING TO PAY to provide the needed nets? -2,000 birds $80 -20,000 birds $78 -200,000 $88
Not taking into consideration the severity of the problem based on donations are similar no matter the amount of birds
self-deception
People interpret failures in such a way as to explain them away. People don't blame themselves, they blame the situation. (work was busy) *we are overconfident and don't take enough credit for mistakes ex: people make the same new years resolution 10 times in a row on average. Why do they keep trying?
Visceral states
People make decisions based on their CURRENT (not future) states, even if those decisions are for the future (e.g., grocery shopping while hungry)
What reduces the main of regrettable actions?
Psychological immune system
Advertising
Reputation of uninformative messages make products more easily recalled in memory and influence our purchasing decisions
What do nudges do?
Solve perennial problems (unhealthy eating, donations to charities, too much trash, poor self-control)
Availability heuristics
Tendency for people to base their judgements on information that is more easily recalled, although it may potentially be inaccurate
Representative heuristics
Tendency to perceive others in STEREOTYPICAL ways if they appear to be typical representations of the category to which they belong *People ignore base-rate information
-Flexibility
The number of times you shift from one class of possible uses to another EX: when a mug becomes a bowl or vase
-Fluency
The total number of suggestions you can make
Put a 6-pack of Coke on campus or a communal fridge, and all the Cokes vanished within 72 hours. Put a plate containing 6 one-dollar bills, and few people take the money. What happened
The two are economically identical, but get very different reactions Cokes were stolen more often than cash -people cheat, but just a little bit
Would you rather have $100 today or $125 in six weeks
Things in the future are worth less -$100 now
"In another version of the experiment, students had to sign a statement stating: "I understand that this study falls under the honor system."
Those who didn't see the statement showed 84% cheating The effect of signing a statement about an honor code is particularly amazing because it's not important if a school has an honor code or not. Unconscious reminder if they have to sign their name
Sydney Opera House
Took over twice as long and 14 times as expensive (took longer and way more expensive than planned) *biased estimate
Describe the status quo bias
We are biased to keep things the way they are to avoid risks generated by change - even when making no change has more risk.
why do companies have a difficult time innovating and reinventing themselves? EX: Microsoft
We are moving into a mobile operating system so when windows has the best desktop rates, this can be an issue in the future. *focus to much on other areas vs. where the trend is headed
Moral Environment is important -One group of students was asked to write down 10 books they read in high school. Another group was asked to write down as many of the 10 Commandments as they could recall.
When cheating was possible, the "book group" score 4.1 The ten commandments group scored 3.1 Unconscious reminder to not cheat - 10 commandments
The scope heuristics
When people rely on feelings, they are sensitive to the PRESENCE OR ABSENCE of a stimulus (rather than the degree of stimulus)
Conjunction Fallacy
When specific conditions are more probable than a single general one (specific reason vs. general reason)
Temporal discounting
When we tend to think that things in the in future are WORTH LESS. People discount many things, including: -money -food -health -environment
HOW MUCH WOULD YOU BE WILLING TO PAY FOR INSURANCE THAT COVERS HOSPITALIZATION FOR -any reason -any disease or accident
any reason: $41 any disease or accident: $89
Selective attention test
are not paying attention besides the task at hand Ex: gorilla walks through while the players are passing the ball
Our weaknesses/faults are seen as relatively common, whereas strengths ___
are seen as rare and distinctive.
take action = reduces regret Positive and negative effects from events are incorporated into our psychological being. Gradually, we get used to these effects, so we don't have ____
as strong reactions to them and we return to "homeostasis"
Instagram is creating stricter restrictions for under 18 year old's
banning ads for toxic weight loss ads
Marshmallow Test
being able to wait for something better (willpower = helpful to career success) -Shows temporal discounting
How do we get those with good intentions to follow up on them? How do we get those without good intentions to have not follow up on their bad intentions? Answer based on exam 1 material
bundling price, framing, decoy effect
People mold, manage, and massage the feedback the world provides them so that they
can construe themselves as lovable and capable people.
Color changing card trick
changed the background, table, and their shirts -People fixate on the problem, when maybe another problem would be better to solve -Fixate on the card trick that they don't even notice the obvious changes
For most people, positive information of themselves (e.g., praise) is recalled ____
easily and quickly
Many of the most successful creators were ___. While they created renowned inventions, they also produced many failures.
extremely prolific
People live longer and
have happier lives
Government
impose restrictions/constraints
Do Ceo's regret actions they made, or inactions?
inactions
The preference for green products decreases when they are priced ____.
less -People like that green products are more expensive, so other people know you can afford these expensive products
Status and consumption -Conspicuous consumption is often used to express status. Oftentimes, behaviors that can help preserve the environment as well as save money are seen as ___.
low status and unattractive (e.g., drying clothes on a clothesline; riding the bus; taking recyclables to a recycling center) *This creates a barrier to responsible consumptions
Term - When doing something good gives you a "license" (i.e., credits / justifiable reasons) to do something bad. ex: After buying green products, people are more likely to litter (or not recycle)
moral licensing
More productive =
more creative
Why does no one remember the ghost busting machine by Thomas Edison, earthquake machine by Tesla, or Six nippled sheep by Alex G. Bell?
not useful
What does the space alien test show? -imagination is structured by:
our past experiences
The mismatch of saying they would purchase vs. actually purchasing (mismatch between intentions and behavior is ___)
overoptimistic intentions
But, by telling people they used less energy than their neighbors and showing their approval :)
people continued using less energy—because they like the approval and verification.
Self-deception
people don't believe they're doing anything wrong.
5. Poor product quality or sensitivity
product doesn't work well -Abtronic
Creativity: -Creative products are most likely produced by those who are most ____
productive overall
People are quick to dismiss negative feedback and find fault with it (i.e., question it), but ____
readily accept positive feedback.
Creativity is ___ over time
reassessed -ex: old mac computer
People are creative when ____
recognized as such by their peers -ex: Van Gogh's creativity was acknowledged when a sufficient number of art experts started to recognize his contributions to the domain. Posthumous peer recognition made him creative
By telling people they used less energy than their neighbors, people subsequently ___
relaxed their energy usage, and used more energy.
What is stereotyping linked to
representative heuristics
Nine dot problem -Without lifting your pencil from the paper, draw exactly four straight connected lines that go through all nine dots but only go through each dot once.
test to measure creativity
Remote Associates Test -The problems below consist of three "clue" words. Think of a forth word that relates to the clue word
test to measure creativity
Successes are attributed to the self (e.g., effort and ability), whereas failure are attributed to ____
the environment (e.g., bad luck).
embodiment
think outside the box (people literally were more creative outside the box)
People engage in "ethical fading" or techniques of neutralization because
this helps maintain their self-esteem.
The % of people choosing green products increases with the ___ of the product.
visibility (want to show off) -car (most visible) -soap (medium visibility) -dishwasher soap (lack of visibility)
Planning Fallacy -we predict how long it will take us to complete a task, we base that prediction on when ____ -We're more accurate in predicting others' completion times because ____
we predict how long it will take us to complete a task, we base that prediction on when we INTEND to finish the task. We're more accurate in predicting others' completion times because we focus more on BASE RATES and PAST BEHAVIOR.
HOW MUCH WOULD YOU BE WILLING TO PAY FOR FLIGHT INSURANCE (1 FLIGHT TO LONDON) THAT COVERS DEATH DUE TO... ANY REASON: $17 ANY ACT OF TERRORISM: $24
when a problem is specified, people are more likely to image what it would look like and how to avoid it (pay more $ for insurance)
