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125 Cards in this Set

  • Front
  • Back
Consumer behavior: what is it?
Reflects the totality of consumers’ decisions with respect to the acquisition consumption and disposition of goods services time and ideas. The study of human responses to products and services and the marketing of those products and services.
Behavioral sciences versus physical sciences – why research is important
Behavioral is dynamic physical is static More uncertainty in behavioral makes research critical
Intuition versus research
We tend to base decisions on intuition but a healthy balance of both is important
Confirmation bias
The tendency to interpret new evidence as confirmation of one’s existing beliefs or theories
Examples of products that have flopped or products that are addressing new needs
Flopped: New Coke. New Needs: Activia gluten free Beef Patties
99 Lives:
Too fast a pace. Too little time causes social schizophrenia and forces us to assume multiple roles. Eg: Executive MBA’s Soup-on-the-Go
Anchoring:
Reaching back to our spiritual roots; Taking what was secure from the past in order to be ready for the future
Atmosfear:
Polluted air and water stir up consumer uncertainty; Focus on clean environment clean energy energy saving products
Being Alive:
Awareness that good health extends longevity and leads to a new way of life
Yoga
diet Coke
Cashing Out:
Working men and women questioning personal/career satisfaction and goals; Opting for a simpler lifestyle
Clanning:
Belonging to a group that represents common feelings/causes/ideals; Memberships in various groups
Cocooning:
Need to protect oneself from the harsh unpredictable realities of the outside world; DVD’s home theaters
Downaging:
Nostalgia for carefree childhood
Egonomics:
Consumers crave recognition of individuality
Eveolution:
More females in the business world and women make up 80% of purchase decisions; Model of winning customers shift towards relationship
Fantasy Adventures:
Crave the road not taken; Xbox games Fear Factor
Future Tense:
Consumers anxiety-ridden by simultaneous social economic political and ethical chaos find themselves beyond their ability to cope today or imagine tomorrow
Icon Toppling:
Don’t want to engage with big companies; Renewed focus on buying local and buying from someone you can see
Pleasure Revenge:
Consumers are having a secret bacchanal; They’re mad and want to cut loose again (indulgences like fast food donuts)
Save Our Society:
The country rediscovers a social conscience of ethics passion and compassion
Small Indulgences:
Little treats to satisfy: little chocolate bars day spa
Vigilante Consumer:
Internet is radically changed the flow of information so consumers know when things have gone awry
Guilt-Free Status:
Consumers increasingly aware of how overindulgence has damaged the planet and society. Never ending guilt spiral.
Crowd-Shaped:
People pooling their data more than ever- this is changing consumer
Made Greener By/For China:
China becoming the epicenter for innovation for green products
Mychiatry:
Real-time health checks (mental and physical)
No Data:
Delivering brilliant service without excessive data collection will earn consumer trust
Internet of Caring Things:
Connected objects will center around people
Global Brain:
Consumers more global and more local in focus
Integration examples of several trends
McDonalds & Coca-Cola BFF Timeout App that rewards people for not using their phones
Integration examples of several trends
Customers can open a video chat with an Esurance appraiser and have the damage assessed via their cellphone camera in real-time
Hotel Banks Antwerp
Guests have access to an in-room clothing “mini-bar”
Asiri Group of Hospitals
Developed soap infused bus tickets to help prevent spread of germs
Smile Suggest
Browser extension uses your facial reaction to bookmark smile-inducing webpages
Paribus
Post-purchase price guarantee app
Transavia
This budget airline turns chip and candy packages into airline tickers
Christian Louboutin
Luxury shoemaker extends its nude collection to suit more skintones
Observations
cannot detect motivations; only responses.
Focus Groups:
Effectiveness of moderator; expensive; representative sample
Interviews:
Social desirability bias
Projective Techniques:
Metaphors; storytelling
Diaries and Panels:
Retrospective; Nielsen Ratings
Surveys:
Question wording; order effects
Experiments:
Most controlled; Establish direction of causality
What surveys do
Tell you what responses are correlated but not necessarily causal
What experiments do
Designed to control and rule out alternative explanations
Correlation:
What Surveys can tell you; Does not tell you which one comes first
Causation:
What Experiments can tell you; Cause and effect
Taste test experiment – video and in class – issues in design
People thought that the vodka that tasted better was the more expensive brand
Independent variables
Personal and Situation Variables
Person Variables:
Internal to the individual - interests; values; beliefs; may be unobservable
Situation Variables:
Product; Place; Price; Promotion; Positioning
Dependent variable
The behavior or consumer response you want to measure (change in feelings; sales); Trick for the marketer is to find groups of consumers who respond similarly to changes in the independent variable become target market
Ways to Reduce Uncertainty
Use multiple measures/ triangulate; Use statistical procedures and analyses; Randomly assign individuals to conditions in experiments; Understand random variability - noise
Why understanding the tools of the scientific method are important
It will give you a starting point when you are attempting to rule out alternative explanations; It will make you better consumers of marketing research results in your career
Selective Exposure
Have to pick a medium to send your messages channels to sell your product through; The process by which the consumer comes in physical contact with the stimulus
Selective Attention
Have to do something to get your message noticed; The process by which an individual allocates part of his or her mental activity to a stimulus
Selective Perception
Have to make sure they understand the message; The process by which we select-organize and interpret stimuli into a meaningful and coherent “picture” of the world
Selective Retention
Have to make sure the message makes it all the way to memory so the consumer can use that information when they need to retrieve it in making purchase decisions
Intentional Avoidance
Junk Mail;Fast forwarding through commercials; Blocking senders
Intentional Exposure
How can marketers ensure target marker is exposed to marketing messages?; Select media that attract target market consumers; Need to think beyond traditional places where consumers are used to seeing advertising
Consumer Exposure Control
Consumers select what media they consume/what stores they go to
Marketer Control
Marketers control when/where consumers encounter their brand
Flush Factor
When consumers go to the bathroom during commercials instead of watching them
Mere exposure effect
The more we are exposed to a stimulus the more familiar it becomes the more we will like it even if we aren’t paying attention
From exposure to attention
Exposure to attention to interpretation

From perception to retention

Marketers need to build strong associations and knowledgestructures in consumers’ memory so that the brand is activated when a relatedconcept is activated (SCHEMAS)


Our interpretation from these perception processesis what is retained and goes into memory (long term). Once the information isin long term memory its hard to refute

Characteristics of attention:
Selective; Can be Divided; Limited
Cocktail party effect
Being able to focus one’s auditory attention on a particular stimulus while filtering out a range of other stimuli
Voluntary Attention
Personal relevance leads to attention; If you want consumers to voluntarily attend to your message it must contain information that is important and relevant to them
Involuntary Attention
Occurs when a consumer is exposed to something surprising; Marketers activate the orientation reflex by creating stimuli that stand out from the surrounding context
Breaking through the clutter
Cockroach on TV screen; Good thing/bad thing
Inattentional blindness
An event in which an individual fails to recognize an unexpected stimulus that is in plain sight
Change blindness
Occurs when a change in a visual stimulus is introduced and the observer fails to notice it
Sensory limits: breaking through
Our attention is drawn to stimuli through our senses. What gets noticed and attended to is dependent on whether the stimulus breaks our “sensory limits”; As the sensory input decreases our ability to detect changes in input or intensity increases
Absolute threshold
The minimum amount of stimulation required for a person to detect a stimulus. It is the difference between something being perceived versus nothing being perceived at all
Differential threshold/Just Noticeable Difference
The smallest difference/change in a specified amount of sensory input that is detectable
Weber’s Law and examples (weight pricing)
The stronger the initial stimulus the greater the intensity needed for the second stimulus to be perceived as different; Adding 1 lb to 100 lb vs 15 lb; Markdowns must be at least 20% before consumers recognize them
Applications of JND in marketing
Sometimes we want consumers to notice differences other times we do not want them to notice changes; If you do not want consumers to notice a change fall below JND threshold: Downsizing/Pricing increase/Change in personality symbol
Subliminal
Below the sensory threshold we cannot articulate what we’ve seen because we are not consciously aware that we have seen it; Iron Chef – McDonalds logo hidden
Supraliminal
Not paying attention… Conscious that something is changing but can’t put your finger on how or what; Gilbey’s Gin ad – Sex on bottle
Arousal and attention intensity
Marketers want to increase overall sensory arousal so consumers pay more attention; Have to be careful not to raise it to the point at which consumers can no longer process the message (i.e. avoid sensory overload)
What enhances our attention and examples
Personally relevant; Pleasant; Surprising; Concreteness; Proximity; Prominence Effect
Attention – what marketers have to decide
Sight; Sound; Smell; Touch; Taste/mouth feel
Limits of attention (list exercise in class)
In general we can only pay attention to 7 +/- 2 pieces of information and have it get all the way into memory
Examples of selective perception
Placebos
Common perceptual biases and examples
Figure and Ground; Proximity; Similarity; Closure; Continuation; Good Figure; Grouping: common fate
Irrelevant Cues
Physical Appearance; Source Credibility; Repetition....... When perception is difficult consumers tend to rely on irrelevant information
Irrelevant Cues: Physical Appearance
People make certain attributions about the qualities that are associated with the product/person based on appearance alone
Irrelevant Cues: Source Credibility
Respected sources carry additional weight even if this isn’t in their area of expertise
Irrelevant Cues: Repetition
As repetition increases more likely to believe what isn’t true
Schemas/Scripts
Pull up information from memory and use it to interpret new circumstances
Halo Effect
A generalized impression is extended to the interpretation of non-relevant stimuli
Limited Hypothesis Testing
We don’t think about all of the possibilities

Short Term Memory

Capacity:7 +/- 2 seconds


Duration:18 seconds


InformationLoss: Rehearsal failure


Coding:Acoustic (sound related)

Pragmatic Inferences
Literally true but figuratively false
Affirmation of the Consequent
If I am in Calgary then I am in Alberta if I am in Alberta than I am in Calgary
Piecemeal Data
Juxtaposition of imperatives; Fragmentation of relevant data
Comparison Omission
Leave off comparison point
Feature identification; prototypicality
Not only does out mind play tricks of perception on us but we tend to group things into categories based on common features because that is the way the world is usually organized
Categorization and prototypicality
When we don’t know exactly how to interpret a new concept we look for common features that will help us identify the concept; Expectations of features and context can play a role in how prototypical a given concept is
Taxonomic category structure
Superordinate Level – Beverages---->Basic Level – Teas Coffees Juices---->Subordinate Level – Diet Non-Diet; Herbal Non-Herbal ----> Category Members/Exemplars/Prototypes -LiptonCoke ----> Features/Associations – a b c
Perception – challenges for marketers
Consumers have different experiences and expectations that influence the perception; different frames of reference (peanut butter vs. Nutella)
First-Hand Experience
Can be controlled by the marketer; Product trials sampling demonstrations; Expensive time consuming but more lasting effects on attitudes
Second-Hand Experience
Can’t be controlled but can be very powerful if managed – “buzz marketing”; Word-of-mouth social media; Almost impossible to control
Expectations/prior knowledge (example taste test)
Perception is constructive; people construct interpretations on the fly
Perceptions are constructed as needed and are based upon two major factors:
The “actual” stimulus or event; Prior knowledge/expectations: What we expect to see to a large extent is determined by what we expect to see which is determined by our prior expectations. Consumers only perceive differences in stimuli that exceed the JND threshold
Long Term Memory
Capacity: Unlimited; Duration: Permanent; Information Loss: Retrieval failure; Coding: Semantic (meaning related)
Memory performance – probability of recall
Probability of recall goes up with number of trials but organized lists are always recalled more easily
Associative networks
Information is stored in memory in an organized network structure. Comprised of nodes and links; Repetition strengthens the link – more likely to prime related concepts/provides a context; Lack of use/strength of association diminishes… becomes less accessible in memory; Role of “priming”; Always recall the first and last positions within lists: primacy and recency effects
Nodes:
Concepts/words
Links:
Associations between linked concepts
Brand exercise
Listing features of diamonds then immediately asked about vegetable many respond carrot i.e. carat
Methods to study memory
Recognition; Aided/Cued RecallFree Recall;
Association principle: assimilation and contrast effects
Ambiguous targets = many possible meanings which is how you could get consumers to think about “unrelated concepts” together; Provide a reference point that anchors the judgement and link it with the target
Assimilation
Shift toward the reference point
Contrast Effects
Shift away from the reference point
Enhancing memory
Chunking; Rehearsal; Recirculation; Elaboration; Encoding specificity
Encoding-specificity principle
Scuba divers more likely to recall in water what they learned in water
Implicit memory
If we divide someone’s attention when they are learning interferes with the encoding process
Source Amnesia
Memory loss that makes it impossible to recall the origin of the memory of a given event. It occurs when you forget where you learned something but your non-conscious recognizes that you were exposed
Dealing with negative publicity
How can we use what we know about priming and the associative network to make recommendations about how to deal with negative publicity?
Challenges with negative publicity
If you are dealing with a rumor is it better to… Ignore the rumor? Try to refute? Do something else?
Summary about memory and impact on marketing
Our LT memory system is comprised of concepts organized in an associative structure. When we are forced to interpret information (part of perception) we tend to rely on our memories and past knowledge structures (categories) to help us with that interpretive process..............The context and the information that primes related thoughts will have direct implications for the conclusions we draw from that perception process...........If a marketer can use what he/she knows about the consumers’ associative networks and how memory works it may be possible to influence the conclusions drawn by the consumers