Midterm 1 Flashcards
Lewin’s interactionist model
Behavior= f(person x situation)
Person= individual characteristics
Situation=environment
Used in an input-output model of decision making
Consumer decision journey
Initial consideration set-> active evaluation (information gathering, shopping)-> moment of purchase-> post purchase experience (ongoing exposure)->trigger causes loyalty loop back to moment of purchase
Quantitative research (2 types)
Secondary data: uses already available info to infer consumer preferences
Primary data: use of survey, observation or experiments to directly measure consumer preferences
-sales data from past purchases, time of purchase, location of purchase
Problem: inferring causation (need correlation, temporal antecedence and no third factor)
Qualitative research
Interviews, focus groups, ethnography and projective techniques
I.e. ZMET
ZMET
A research tool that elicits the key associations(metaphors) that capture the core meaning of the brand
Steps
- Give me respondents several days to gather 12 pictures they associate with brand
- Guided interview
- create Association map
3 layers of a metaphor
- Surface metaphors: everyday language (I.e. I am drowning in debt or bank froze his assets)
- Metaphor themes: below the surface (I.e. money is liquid)
Deep metaphors: relatively few and universal (I.e. money is a resource)
Controlled vs automatic processing
- automatic( less resources) controlled (more resources)
- processes can move from controlled to automatic with practice (We are cognitive misers)
Motivation (MOA)
Motivation: inner state of arousal that impels one to action
triggered by something that is
- personally relevant
- Costly/risky
- Consistent with one’s goals, values, and needs
Ability (MOA)
Possession of the skills or means to make an outcome happen
Influenced by
- Knowledge and expertise
- Financial resources
- Social network
Opportunity (MOA)
Set of circumstances that makes it possible for an outcome to happen
Influenced by
- Time
- Availability
- Repetition
- Pack of distraction
Needs
Discrepancy between actual state and ideal state
I.e. maslows hierachy of needss
4 basic needs
- Control; the ability to influence in one’s environment (I.e. illusion of control)
- Esteem: sense of self worth or personal value (attributional bias)
- Belonging: people have an inherent need for acceptance and connection to other ppl (in group vs out group bias)
- Meaningfulness: having a sense of purpose (rooted in desire to avoid mortality salience/ terror management theory)
New coke conclusions
- Consumer owns the brand
- brand meanings are a portfolio (some for long haul, some for specific times)
How we process information
Stimulus input-> exposure-> attention-> perception-> comprehension
Exposure
The process by which consumers come in contact with a stimulus
-without it there is no opportunity to process
Attention (and properties)
The act of devoting cognitive resources to a stimulus
-most ads try to catch attention by “cutting through the clutter”
Properties
- Limited amount of attention
- Selective (cognitive misers)
- Can be divided
What motivates consumers to pay attention?
- Personal relevance
- Perceived risk/cost
- Consistent with personal values, needs and goals
- Pleasant stimuli (music, attractive person, humor)
- Surprising stimuli (novel and unexpected)
- Stimuli that is Easy to process
Perception (and principles)
The process of determining the properties of a stimulus using at least one of the 5 senses (is context dependent)
Principles
- Law of closure: tendency to perceive forms and figures in their complete appearance despite the absence of one or more of their parts (organize stimulus into a meaningful form)
- Perceptual set: the tendency to perceive certain parts of a stimulus but not others (I.e. Santa Clause study) ( the particular parts we perceive are determined by our expectations and feelings)
- Figure/ground relationship: tendency to separate a whole figure from the background to understand what’s being seen
Subliminal influence
Subliminal exposure: exposed to a stimulus that is below threshold for conscious perception
Subliminal perception: something is perceived on an unconscious level
Subliminal influence: it impacts behavior/choice
I.e. mere exposure effect; previous exposure to neutral stimuli leads to more liking
Has potential to influence ppl but has limits
Sensory memory
Where we store raw input from all 5 senses
-auditory inputs tend to be stored longer than visual inputs ( visual stimuli can be rescanned, auditory stimuli disappears more quickly)
Short term memory
Temporary storage of info for short term retrieval or discard
- need repetition to keep in STM longer or get into LTM
- where first of 2 stages of encoding occurs
- can hold 7 plus/minus 2 objects
Encoding
conversion of perceived stimuli into a construct that can be stored in STM( stage 1) or LTM (stage 2)
-is sometimes automatic and sometimes controlled
Types of stage 1 encoding
- Discursive processing: process inputs as words (can lead to overload of words)
- Imagery processing: process inputs as images (can lead to elaboration of an image: finding meaning in an image)
Both occur when processing sensory memory into STM
Long term memory
Permanent storehouse for information
- structures in a semantic/associative network (spreading activation)
2 types
- Episodic: knowledge about ourselves and our personal past experiences (tend to be sensory abstractions)
- Semantic: general knowledge about an entity, detached from specific personal experiences
Stage 2 encoding (STM to LTM)
- Recirculating: repeated exposure
- Rehearsal: actively reviewing and repeating information
- Elaboration: consciously integrating info with existing knowledge
How brands use stage 2 encoding
align brand with positive concepts and comparative advertising
- diversify the contexts that trigger recall of the brand (recirculation), include catchy content ( rehearsal), include unexpected content (elaboration)
Use of colors shapes and smells
Retrieval errors (why memories are recalled inaccurately)
- Reconstruction in retrieval: we deconstruct info from STM to LTM then reconstruct from LTM back to STM and this reconstruction can lead to distortion of info
- How info is encoded into the LTM: leveling and sharpening of stimuli when going from STM to LTM
- leveling: leaving smaller details out
- sharpening: retaining the more “cognitively arousing” details
- reconstruction of info into LTM leads to this - Flashbulb memories: memories from traumatic events are stored more vividly (we tend to feel confident about these memories but they are misleading
- Misinformation effect: recall of event becomes less accurate because of post event information (I.e. eyewitness testimony)
- when post event info is encoded it can cause ppl to remember the wrong stimulus - Sleeper effect: episodic memory is worse than semantic memory thus what you heard (semantic) is separated from where you heard it (episodic)
- info gets more persuasive over time
Schemas
A set of associations linked to a given concept
Types
- Category based: set of associations for groups of products, brands, people, etc
- violating expectations can promote elaboration or lead people to ignore the stimulus - Target based schema: schema for a particular product or individual
- Brand image schema: associations capturing what a brand stands for
- Script schema: knowledge of the sequence of actions involved in performing an activity
Category based expectancies
We expect members of particular groups to be similar
Types
- Exemplars: actual members of a category (pulled from LTM)
- attributes of new stimulus are compared to those of multiple known exemplars in a category
- I.e. comparing traits of new animal to one’s you’ve seen before - Prototype: an abstract average of the members of a given category
- represents the most typical member of a category
- attributes of new stimulus is compared to those of a single prototype
- I.e. comparing a new cat to an average cat (more conducive to quick judgements but less flexible/adaptive)
Schema expectations (matching and violating)
We often want products to fit category based schemas (I.e. prefer prototype)
But sometimes we want to violate expectations (moderate incongruence)
Marketing implications for schemas
1.Consumers make inferences about a product/brand based on how it’s categorized (I.e. Mercedes benz=luxury car thus people infer prices, features, etc)
- Leveraging category based schemas (I.e. organic cigarettes)
- through extensions
Licensing extension (with pros and cons)
Licensing: license out use of brand name to other companies
-pros: tap into existing production and marketing systems of other companies and get revenue from products under your license
Con: weakens licensing control over product (thus less control over brand schemas
Co branding (brand alliance) extensions (with pros and cons)
Companies sell hybrid product (one time relationship)
Pros: mutually broaden reach of both companies and useful when brand doesn’t have much credibility in certain product categories
Cons: may fail if products are too different/ target different markets
-potential negative carryover across cobrands (less licensing control)
Line extension
Introduce new items within the same category in order to
- increase number of users
- Increase degree of usage
Brand extensions
Introduce new items within a new category
-increases number of uses
Risks:
- confuse customers
- cannibalize core brand sales
- hurt brand image of unsuccessful
- trigger prisoners dilemma escalation of extensions where no one wins
- brands that are seen prototypical if a product category are difficult to extend (I.e. gerber food for the elderly)
Keys to a successful extension
- Needs to fit brand concept and resources
- needs to have a sustainable advantage on competition
- needs to be relevant to consumer needs
Overcoming extension challenges
- When a brand is tightly associated with a certain degree of strength (try super branding/ line extension)
- When you want to differentiate a new brand but keep strong association with parent (try sub branding… I.e. armani’s sub brands)
- When you want to clearly differentiate a new brand but keep a soft link to establish familiarity and legitimacy (try endorsement: master brands identity serves as a quality stamp)
Attitude
General evaluation that expresses how much we like or dislike something
Vary in favorability, accessibility (how easily it can be retrieved from memory), strength, persistence
-can be conscious or unconscious
How attitudes are formed
- Mere exposure
- Inherent preferences (evolution)
- Direct experience: learning
- observational learning
- operant (instrumental) conditioning (I.e. skillful complements and promotions)
Goal: repeated rewards help develop positive attitudes toward brand - Classical conditioning(UCS: song, UCR: happiness CS: product CR: happiness
Functions of attitudes
- Adaptive/adjustive: allow us to socially adjust or gain social approval
- Self expressive: express who we are as a person
- Ego defensive: protect our self esteem/ distorting perceptions of the world
I.e. people who believe in a just world blame victims
I.e. obese consumers discount knowledge of McDonald’s - Knowledge function: make the world more understandable and ascribe causes to events
- stereotype: mental structures that lead to predictions about people’s characteristics (Allow is to make quick judgements but are often inaccurate)
Marketing implications for functions of attitudes
Consumer attitudes serve different functions and knowing them is critical for positioning and advertising one’s brand
Implicit vs explicit attitudes
Explicit: reflect conscious beliefs
Implicit: mental response that is so well learned that it operates without awareness
- measured through IAT, text analysis and facial emotion detection
Burberry case takeaways
Before bravo
- Burberry lacked
1. variation in designs
2. Consistency (licensing issues)
After bravo
- targeted man/woman seeking accessible luxury with classic style
- cross generational demographic
- customers who want accessibly prices products
- aspirational customers
How?
- control over
1. Product line
2. Licensing
3. Company owned retail stores
4. Distributors
5. Price and advertising - implemented line extension (risk control mechanism)
1. Prorsum
2. London (accessible luxury)
3. brit (mass market luxury)
