Session 3

Question 1

What is a brand?

Answer 1

a name, term, design, symbol or any other feature that identifies one seller’s good or service as distinct from those of other sellers
- it is an assocaition in consumer’s minds (e.g., feelings, attitudes etc.)

Question 2

What is brand equity?

Answer 2

brand awareness + brand image

Question 3

What is brand awareness? What are its 2 elements?

Answer 3

whether people remember the brand.
Brand recognition & brand recall

Question 4

When is brand recognition more important?

Answer 4

when consumers decide at point of purchase (when choice is stimulus-based)

Question 5

When is brand recall more important?

Answer 5

When consumers decide away of POS (when choice is memory-based)
–> critical for service and online brands

Question 6

What is the difference between men and women in brand awareness?

Answer 6

Woman are more stimulus-based and men are more memory-based

Question 7

How should brands build positive associations with their product?

Answer 7

by highlighting positive attributes of their product. This reinforcement will automatically shut-down negative associations.

Question 8

Why should companies never remind customers of negative associations? (two effects/principles)

Answer 8

Halo Effect: The halo effect is a bias where a positive impression of one trait influences the overall perception of other unrelated traits, making them seem better (alwas early - great performance)
Part-list cuing effect:
providing a partial list of items makes it harder for individuals to recall other items from the same category

Question 9

Why should companies whow their brand/product TOGETHER with positive images?

Answer 9

Putting the brand/product together with a positive image creates an affective reaction in the mind of consumers who cannot figure out whether the positive affect comes from the product/brand or the positive image. Coca-cola does this very well with their happiness campaigns.

Question 10

What are product endorsers?

Answer 10

Anything (can be human, but also anything else) that acts as a “bekräftiger” of your brand.

Question 11

What are positive aspects of endorsers?

Answer 11

They serve as a peripheral cue:
- transfer if liking, speicifc associations, testimonial and add credibility and trustworthiness.
example weihnachtsmann and Coca Cola

Question 12

what are negative aspects of endorsers?

Answer 12

• can overshadow the product, can be overexposed, may not be congruent with the product category

Question 13

Why should companies show their brand/product together with product endorsers?

Answer 13

This way the affection people feel towards the endorser will transfer to the brand such that if the endorser changes behavior it will not affect the brand.

Question 14

What are the six learning principles?

Answer 14

Halo effect and part-list cuing are the focus

Question 15

How does the price influence our view on the product? (placebo effect of price)

Answer 15

We associate higher prices with higher quality and potency
-> how experienced enjoyment is higher after expensive wine

Question 16

What are the two ways to choose products? (both in physical stores or online)

Answer 16

Scanning (recognition) and picking (recall)

Question 17

Where should familiar items be placed in a supermarket?

Answer 17

Familiar items are better remembered from memory (from recall).
Familiar items should be placed in the middle of the aisles to motivate consumers to visit more areas inside the store.

Question 18

Where should unfamiliar items be placed in supermarkets?

Answer 18

Unfamiliar items are better remembered by walking inside the supermarket (from recognition). So unfamiliar items should be placed at the end of the aisles where consumers are more likely to go and therefore remember that they need to buy these items.

Question 19

what is the ikea effect? (empowerment effect)

Answer 19

Empowering consumers to participate in the production process is a very good strategy (the ikea effect). It is only not a good strategy for luxury products.
Christoph finds that asking consumers to help the production increases intention to purchase and WTP by 50%. However, for luxury products we don’t want to do it ourselves. We want experts to do it.

Question 20

What is priming?

Answer 20

It’s the unconscious activation of ideas and it has a strong influence on consumers. If the activation is unconscious, we cannot avoid it, as we do not have any mechanisms in place. So companies should try to activate the brand unobtrusively by embedding the brand in movies, video games, shows

Question 21

What are the four strategies companies use to get consumer’s attention? What has the strongest effects?

Answer 21

Music, sex, humor and threats.
Music is more complex than the other stimuli (it’s more difficult to process). But it may have stronger effects. This is because its effects can occur even unconsciously.

Question 22

What should you remember when using sex as a stimuli?

Answer 22

Sex and violence shouldn’t be used in ads and commercials. Most people are against the objectification of bodies in ads. Sexual stimuli also makes people less likely to remember the brand and disrupts their thinking.