Signaling

Question 1

What is Thin-slicing?

Answer 1

Individuals frequently make decisions on thinslices
of data
- The power of RAPID EVALUATION
- Implicit Attitudes vs. Explicit Attitudes

Question 2

Economic perspective?

Answer 2

Signals that businesses send to consumers

• Businesses send signals to stakeholders
• Intentional and unintentional
• Most important in areas where the signaled characteristic is ambiguous

Question 3

Psychological perspective?

Answer 3

Signals consumers send to important others

Question 4

What are Four Important

Economic Signals?

Answer 4

• Pricing signals
• Advertising signals
• Personnel signals
• Corporate action signals

Question 5

Pricing signals are effective because?

Answer 5

… few consumers have an accurate and up-to-date

list of prices for all possible goods in memory.

Question 6

What are Pricing signals?

Answer 6

….firms signal “good deal” to
the consumer by using several common
tactics

SALE SIGNS
Prices that end in 9
Signpost items
Price guarantees

Question 7

What Pricing signals do SALE SIGNS create?

Answer 7

• Can increase demand by 50%

- The 30% rule

Question 8

Signpost items?

Answer 8

• Complementary
• Accurate
• Popular

Question 9

When are pricing signals most effective?

Answer 9

Ambiguous
1. Infrequently bought goods
2. New or novice consumers
3. Product designs change frequently over
time
4. Product quality or sizes widely vary

Question 10

3 Example of uses for Advertising signals?

Answer 10

White space
Medium cost
Medium impermanence

Question 11

What is Mere exposure?

Answer 11

the effect by which familiar
(frequently seen) stimuli are judged to be
more attractive.

Question 12

What are examples Personnel signals?

Answer 12

Status
- Example: Compensation
from managers versus
front-line personnel

Appearance

• Golf shirt & khakis
• White lab coat

Question 13

What is example Firm action signals?

Answer 13

Corporate Social
Responsibility

Packaging

• Strategic use of public
  relations function
• Often a response to
  unplanned phenomena

Question 14

What are Psychological Signaling for Impression Management

Answer 14

Individuals are cognizant of
what their behavior signals
& monitor reception

Question 15

What is the Purpose for accurate communication

Answer 15

B2B Examples

• Consultant (Inspiration, problem solving)
• Insurance/Investment (Credibility, security)
• Advertising (Aesthetic, hip)