quiz 2 Flashcards
what are 7 things self control is affected by
- resource availability
- psychological distance
- goals
- emotions
- social context
- licensing effect
- choosing for others
what is resource availability
assumes that our self control resources can get depleted
once our muscle of self control gets tired we tend to slack off and give in
what is psychological distance
the further the distance, the more I will think of the event/task abstractly
give an example of lower level psychological distance
i wont enjoy class this morning, it is too far to walk, i dont want to get out of bed therefore i wont go
what is self control
the battle between desire and willpower
give an example of higher level psychological distance
i will commit right now to go to class next week
how do emotions impact self control?
sad = lower self control, indulge
guilt = might keep me from repeating things
we try to maintain a positive mood = mood regulation
goals definition
act of self control can be influenced by personal goals
what are ways in which social context can influence consumer behavior?
- People may worry about opinions of others
- Have image concerns
- Make inferences about what priorities others have
- Social exclusion: feel like we are being excluded from a group
what is the licensing effect?
in order to indulge in something you need to justify it by doing something virtuous
marketing implication of licensing effect
if firm is selling vices, marketers would want to employ this for people to buy more
how does choosing for others impact consumer behavior
people will become more careless when buying for other people, less self control
how do consumers force themselves to engage in self control
by controlling the consumption rate = how fast i am consuming things
what is the consumption rate equation
quantity consumed/time window of consumption
analyze the consumption rate equation
longer the time window = lower rate, more indulging items
shorter the time window = higher the rate for healthy items
9 ending prices
$4.99 cheaper than $5
which has a bigger pain of payment: cash or credit card
cash
which has greater pain of payment: credit card or mobile payment
credit card
two types of payment timing
- prepay
- post pay –> more painful after experiences/vaca
if i am currently feeling pain of payment, what types of purchases may i avoid
hedonic
as pain of payment increases, ____ increases
the need for justification
define need for justification
when consumers feel they cannot proceed with a purchase unless they can find reasons to justify it
what is a way a firm can justify a purchase?
putting it on sale
what is motivated reasoning
people are more likely to arrive at conclusions that they want to arrive at but they dont because it cant be justified
Consumers try to generate reasons that would seem rational to an observer
consequences of pain of payment relating to justification
- without justification, greater tendency to purchase utilitarian goods
- without justification, lower tendency to purchase hedonic goods
- without justification, lower variety seeking / purchase volume
two responses to financial deprivation
- compensatory consumption: consuming for the sake of restoring ones sense of well being
- indulge in scarce goods
the personal effect of financial constraints on consumer behavior
- react –> financial restraint creates a challenge
- cope –> spend resources efficiency, invest more in material goods to raise social status, establish control through consumption, scarce goods
- adapt –> spend more money on necessities rather than luxuries, become less susceptible to framing
Will financial deprivation lead to preference for all types of scarce goods?
Deprivation will lead to greater choice of the scarce good when the scarcity was framed in terms of supply side scarcity
what does it mean for time to be more malleable than money?
It is easier to justify an expenditure of time rather than money
ex: 1 hour on a weekday has high value
1 hour on a weekend has low value
TIME IS ABSTRACT
what does it mean for time to have greater slack than money
We focus more on the present than the future when it comes to time so people think they have more time in the future than they really do
money is more steady (value and receiving it)
using heuristics : money vs time
used more in decisions involving time rather than money because valuation of time is usually harder
compromise effect
consumers may choose middle option if unsure what to do
Productivity orientation
the fundamental need to always be productive with their time → these people want to spend more time on experiences
Time moving perspective
time as moving towards us (ex: Next wednesdays meeting as been moved forward 2 days = moved to monday)
Ego-moving perspective
ourselves moving forward in time (ex: Next wednesdays meeting as been moved forward 2 days = moved to Friday)
example of time as a distance? example of time as a resource?
- how long will this take
- how much time do i have
planning fallacy
thinking that a project / task will go as planned even though we know from past knowledge that this has not been the case
what does the planning fallacy stem from?
- The future will be easier than the past
- Seeing things from an inside perspective vs an outside perspective
- Failure to unpack the task into steps required to do the task
how to cure the planning fallacy
1, Adapting a more concrete mindset → shifting from why mindset to how mindset
2. Therefore shifting to a more how mindset to help create more accurate estimates of task completion times
Intertemporal choice
the choice between two objects is separated by a wait time. A customer must decide between a smaller sooner reward or a larger later reward
what is a smaller sooner reward
inferior product but dont have to wait as long
what is a larger later reward
new version of the phone 6 months later
As marketers, how can we take advantage of the malleable nature of time?
- Influence the rewards and wait time
- connect consumer to their future self = more savings and more commitment towards products that enable a better future for the customer
how can a marketer influence the reward of a product?
you could make the better later version sound MUCH better than the current version so people would want to wait
how can a marketer influence the wait time of a product?
- framing the wait time in a way that makes it seem shorter
- promote the “emotion of awe” when consumers have to wait
- preorder lists
Numerosity effect
changing the numbers to make the time feel shorter, (ex: 180 days to 6 months)
examples of time as a product attribute
Battery life / how long it will last
Trial periods
Delivery time
How quickly it will operate
Warranty periods
Two attributes when judging time to or since an event are
Characteristics of the event itself
Characteristics of the time interval between now to the event
what are characteristics of an event itself that can impact time since/to the event for a consumer
- emotional / unique = seem closer
- negative events = seem closer
- if we have anticipation, we may want to delay the event.
event markers
events within the time interval related to the target event
why would a marketer want to use event markers
Its harder for consumers to justify buying something else right after they just purchased the first one, so marketers might want to manipulate the feeling of how long it has been since I made a purchase
marketing for tech company (event markers)
frequent release windows, follow up emails/notifs
applying event markers to marketing (events/experiences)
- highlight reel
-nostalgia - make us want to purchase again
- frequent reminders of past event
satiation
consumers will be less satiated (satisfied) when they feel like their last consumption of this experience or product was a long time ago
Applying intertemporal choice to marketing → time and choice
Scheduling events up to the release of the product (events, teasers, trailers), people may still feel like it is far away
present bias
people are more likely to be biased towards smaller sooner rewards
We cant resist the attractiveness of getting rewarded immediately
Temporal discounting
tendency of consumers to prefer smaller, immediate rewards over larger, delayed rewards
Discount rate
rate to which i discount the future, or dont really care about the future
would someone with a lower discount rate want $100 today or $130 in 1 month?
$130 in 1 month
would someone with a higher discount rate want $100 today or $130 in 1 month?
$100 today
impact of VR in marketing for the consumer
- creates telepresence
- provides first person perspective
- promotes patience
- allow you to feel emotions of hedonic products/experiences
telepresence
feeling of being transported to a different environment
does VR satisfy more hedonic or utilitarian products?
hedonic
how does quantification impact marketers
- Showing progress in a game gets people to continue playing the game
- Pay to play
- Gives consumers a sense of achieving something
how does quantification impact consumers
- Quantification can make consumers feel extrinsically motivated by an app or device
(This can make people run more but enjoy it less therefore in the long run they will do it less)
when does AI work
Everyday product recommendations
when does AI not work
When needing a human connection
Medical decision making
when will consumers be motivated to support creators?
- Feelings of guilt (i have consumed this much content i should pay in some way)
- Helping someone (smaller companies/influences may have a warmer relationship with consumers than big companies)
Active forecasting
predicting how much fun it would be to watch more content from this creator in the future
Definition of social influence
info and pressures from individuals groups and mass media that affects how a person behaves
3 main sources of influence
- marketer dominated sources
- non marketer dominated sources
- opinion leaders
examples of marketer dominated sources
ads, personal selling
examples of non marketer dominated sources
- friends
- family
- media
who are opinion leaders?
people who are liaison between media and opinions/behaviors of an individual/group → SM influencers, people who are influential in your life, professionals
when will marketers use opinion leaders?
Marketers may use opinion leaders to strike deals with youtubers, influencers, in order to target an audience or refer customers to these people
two types of social influence
- informational
- normative
what is informational influence
- Extent to which sources influence consumers simply by providing information
- Affects a consumers judgement
- Consumers truly believe the information provided to them
- Rely less on their own independent judgment
strength of informational influence is dependent on
- product characteristics (consumers seek more info on riskier products)
- consumer/influencer characters (when influencer is regarded as an expert influence is high)
dimensions of information
- Valence: whether info about something is good or bad
- Modality: verbal vs non verbal info spreading
what is normative influence
- Consumer trusts their own judgement but my not use it in their decision
- Judgement is not consistent with the group / those around them
- Implies that customers will be punished if they do not follow the norm and will be rewarded for performing the expected behavior
normative influence impact on consumer behavior
- conformity
- brand choice congruence
- compliance
- reactance
what is brand choice congruence
the likelihood that consumers will buy what others in their group buy
what is reactance
too much pressure → doing the opposite of what is expected of them because their individuality/freedom of choice is threatened
when is normative influence the strongest?
hedonic goods in public consumption context
what affects normative influence strength?
- Individual consumers who are more susceptible to influence
- people who fear exclusion
- people who dont need to be unique
- coercive power of a group
coercive power
extent to which a group can deliver rewards or sanctions
marketing implications of normative influence
- marketers need to create norms (illusion that most people are behaving in this way)
- highlight the rewards of having this product
- Have the sales person be an in group member (try to show that they belong to the same group as the consumer)
reference groups
a set of people with whom a customer compares themself as a guide to developing their own attitudes, knowledge, and behaviors
3 types of reference groups and how should marketers react with these groups
- aspirational reference groups (associate with these groups)
- associative reference groups (accurately represent these groups)
- dissociative reference groups (avoid these groups
self efficacy
individuals belief in how competent they are in achieving their goals
what is high self efficacy imply
they are able to achieve their goals most of the time
what does low self efficacy imply
less confidence in their ability to achieve the goals they want to achieve, give into indulgence
entity theorists
individuals traits cannot change / fixed
Incremental theorists
individuals traits are malleable and can change → self-improvement based products
Need for cognition
tendency for an individual to engage in effortful cognitive activities → low need for cognition would be more influenced by emotions / heuristics, high need for cognition would prefer more effortful decision making
Optimal stimulation level
people prefer things that are moderately arousing (low stimulation level prefer less arousing activities and vise versa) → higher levels prefer more variety and stimulation of senses
Dogmatic consumers
close minded, resistant to change and new ideas → less likely to switch brands, or less variety seeking
marketing implications for someone who has a Need for uniqueness
offer a variety of products that are unique, provide customization
two styles of processing
- visualizer: prefer pictures
- verbalizer: prefer words
promotion focused consumers
motivated to make advancements, achievement oriented, risk taking
Use messaging that focuses on what the consumer will gain, such as “Achieve your dream smile with our advanced dental care products” or “Unlock your potential with our innovative software.”
Prevention focused consumers
motivated to attain security, safety information, risk averse
Highlight how the product or service provides protection, safety, and reliability.
individualistic consumers are
- Focused on their personal rights and concerns as an individual
- Value independence and freedom
- Less susceptible to normative influence
- More risk taking
collectivist consumers are
- Prioritize group cohesion over individual pursuits
- More susceptible to normative influence
- Avoid risk taking
Conspicuous consumption
buying things to show off ones status
consumers motivation to consume
If ultimate goal to max well being → marketer can fulfull need to increase happiness
examples of Prosocial spending
- gifts to others
- donations to charity
what is Prosocial spending
Intentional activities and practices where one effortfully chooses to engage in certain types of behavior may lead to more lasting happiness
3 aspects of prosocial spending
- connectedness
- competence
- autonomy
what is connectedness?
gives the feeling of connecting with other people and builds relationships
marketing implications of connectnedness
- Make consumers feel they are helping in group members have positive affect on donation intentions
- Promote community
- Visuals of other donors
- videos/images
Create campaigns that tie prosocial spending to group identity, such as “Join our community in making a difference” or “Be part of the change.” This approach can be particularly effective in fostering loyalty and ongoing engagement
what is competence ?
individuals can witness positive impact of their donations, give them a sense of achievement
marketing implications of competence
- Outcome salient to donor
- Send update about what your money really did → visualize where your money is going
what is autonomy
makes the consumer feel they are spending money on others through their own doing rather than being forced to
marketing implications of autonomy
- Show where money gets allocated
- Giving choice/illusion of choice that they get a say in where this goes
- Allow consumers to choose their own donation amounts
what are the benefits that experiences give to consumers
- more open to positive reinterpretations
- central to ones identity
- they have greater social value
- unique and specific
Experience goods
one needs to experience it to truly determine its quality
Retrospective evaluation:
was the money well spent? Look back at ones consumption and sees how much pleasure one derived from it → more privileged to have consumed experiences over material goods
FOMO
worry about missing out on opps to consume, greater for experiences than material goods. Social events are rare which creates regret
what do people spend majority of their income on
material goods
Search goods
one can learn about the product by simply searching for info on it
material spending
Spending money with primary intention of getting a tangible object
How can markets make in store purchases feel like an experience?
Brand experience: identity, packaging, in store experience
Salience of material consumption
Since material consumptions say tangible, it might remind consumers about the resources they spent to acquire it and therefore it might not feel worth it
BUT experiences aren’t always better than materialistic goods (how?)
- You want something to last
- If youre trying to seem wealthier up front
- If you are giving a gift you may prefer to gift a material good than an experience
