Total Flashcards
The set of human traits associated with a brand:
Gender
Age
Personality traits
Socioeconomic class
Values
What is brand personality?
Demographics
Values
Psychological traits
How can brands be described as a person?
What are the 5 dimensions of Aaker’s brand personality scale?
Sophisticated
Rugged
Sincere
Exciting
Competent
(upper class, glamorous, charming, sexy)
Sophisticated
(tough, strong, outdoorsy)
Rugged
(down to earth, honest, family-oriented, wholesome, cheerful)
Sincere
(young, modern, daring, spirited, imaginative)
Exciting
(reliable, intelligent, efficient)
Competent
Helps a consumer express their actual self
Helps a consumer express their ideal self
Can be the basis of a relationship between the customer and the brand
What are the benefits of a brand personality?
Can be formed and influenced by any direct or indirect contact that a consumer has with the brand
How is brand personality formed?
Factors that effect brand personality
Users of the brand
Company employees
CEO
Brand name
Symbol or logo
Adverting style / tone
Price
Distribution channel
Celebrities
Brand spokespersons
Relationships with ____ brands deepen over time (like friendship)
sincere
Relationships with _____ brands weaken over time (like a fling)
exciting
What is a transgression?
Violation of the implicit or explicit rules guiding relationship performance and evaluation
Example: google drive deletes all your files
How does habit differ from loyalty?
Habit is a behavioral response to a cue; loyalty is driven by emotion with repeat purchases as the result. Loyalty means faithfulness and unswerving devotion
“Rich affective grounding reminiscent of concepts of love and interpersonal domain, the affect supporting brand relationship endurance and depth was much greater than implied in simple notions of brand preference”
What is at the core of strong brand relationships?
Information sharing should be reciprocal; make the customer feel listened to and respected
Dependability
Accountability
What are the relationship expectations that consumers have for brands to which they are loyal?
Customers tend to spend more time with you as their incomes increase and they feel more attached
They feel the brand is theirs
They feel the offering is more superior
More likely to spread + WOM (putting their reputation on the line)
More likely to bring new customers to the brand
More likely to talk about the brand as “relationship partners”
Loyalty value
Aggregate or individual sales date can be used for
Forecasts
Understanding consumption patterns
Customizing offerings
Identifying needs / preferences and changing
Identifying upcoming life changes
Customer data is a “loyalty programs most valuable asset”
Assume that a customer bringing information is speaking on behalf of others (positive or negative)
Information value
Communication from the company to customers and
positive WOM
Sharing news
Sharing products
Sharing discounts
Customers communicating with other customers, especially important with:
Customers who are part of large social networks where peers are influential
Customers who are particularly influential (wealthy, well connected people)
Services / experiences where people seek WOM before buying
Communication value
Sources of income, generation of sales, funds, profit
Old customer retained is worth more than new customer won
Loyal customers tend to spend more
Customers can be incentives w/ loyalty programs
Reduction of costs
Repeat customer can be less expensive to serve
Costs to acquire new customers is high
CLTV may be calculated to determine expected economic value of a customer to the firm
Monetary Value
Michael Kors purse
Loyalty
Targets pregnancy predictor score, asking chat rep to clarify return policy
Information
positive WOM, sharing news, sharing products, sharing discounts; Important communicators: pediatricians, hair stylist, spas
Communication
Starbucks loyalty targeting
Monetary
Behavioral segmentation strategy (silver, gold, platinum)
Higher CLTV, higher marketing budget can be to acquire each customer
Aim of loyalty programs is often to identify and nourish those customers w/ high CLTV
How do companies use CLTV to make decisions?
Pareto principle (80-20 rule)
20% of customers provide 80% of orgs revenue
Updated 20-200 rule
20% of customers provide 200% of revenue
Additional purchase requires ongoing or additional purchases (razor & blades)
What are two-stage products?
“A process whereby a smaller company with fewer resources is able ot successfully challenge established incumbent business by successfully targeting those overlooked segments gaining foothold by delivering more suitable functionality at a lower price”
What is disruption?
Brand presents itself as the scrappy challenger or outsider fighting against larger more established brands
What is underdog positioning?
Consumers react positively to underdogs when they see the underdog aspects of their own lives reflected in branded products
Produces ego expressive value & social value → higher preferences, purchases & loyalty
Creating underdog positioning
With which type of purchases is underdog positioning most impactful?
Everyday lifestyle products, passion purchases, commoditized markets, millennial & gen z targeted products
Create a customer experience of “belonging to the club”
Direct access to costumers
Better “storefront” experience
What are the advantages of a direct-to-consumer (DTC) model?
When is radio advertising most effective?
Largest reach with Gen X and older Millennials
Selective targeting
Repeated exposure
More memorable: sound is more effective that written ads
Time efficient & cost effective
What are the advantages of radio advertising?
Unconventional marketing that uses surprise, creativity, or boldness to promote a product or brand in public spaces
What is guerrilla marketing?
What does guerrilla marketing aim to achieve?
Produce great results for cheap
Grab public attention in a more personal and memorable way
___% interaction and listening
___% pushing the brand
80%
20%
How do you interpret a marketing funnel?
Top – visibility
Middle – nurturing and persuasion
Bottom – action and loyalty
What are the 5 categories of social media influencers?
Celebrity
Mega
Macro
Micro
Nano
Motivate the distribution channel to sell to consumers
Effective with lower cost products, lesser-known brands, and impulse purchases
L&N used discounted invoice prices to distributers, free cases w/ min orders, shelf talkers
What is push marketing?
Build demand at consumer level
Effective with highly visible, well-known brands
L&N used contests, give aways, and digital coupons
What is pull marketing?
Graphic warnings on cigarette, research found these images had little effect
Had boomerang effect – viewers disengaged and blocked out the message
Excessive fear-based tactics can backfire
What is fear’s boomerang effect?
Method companies use to evaluate the effectiveness of their marketing communications before launching them
Consumers are shown the marketing message in a simulated or real environment
Their reactions are captured and analyzed using various techniques
What is copy testing?
Dominates the market
Organizations (lawyers, accountants, construction, retail) apply a set markup to the
cost of production OR what they buy the product for
Often used by established companies
What is cost-plus pricing?
What is prestige pricing and how does it affect consumers’ emotions?
Higher end stores and brands use it → $-.00
The decision is context is driven by feelings
The item is purchases for a hedonic purpose
Encourage reliance on consumers feelings “it feels right”
marketers are likely to benefit from pricing the products at rounded prices.
More emotional
marketers are likely to benefit from pricing the products at non rounded prices.
More cognitive
What is a good-better-best pricing strategy?
Good – low-cost, stripped down
Better – standard
Best – premium, feature rich version
Price-sensitive customers: want a more affordable option
good
Mainstream customers: stick with the current standard
better
High spenders/value seekers: want premium features and will pay more
best
How many people opt for the “Best”?
Up to 40%
what options do companies have?
Grow revenue and attract new customer segments
Benefits
More revenue, market expansion, brand elevation
Offensive plays
how and why would companies use this as a defensive strategy?
Protect against low-cost competitors or price pressure
Benefits
Call customers bluff, avoids devaluing core offerings
Defensive plays
plays – what are they?
Leverage psych to increase conversion and average spend
Consumer Behavior
Good should not be more than __% below better
Best should not be more than __% above better
25, 50
Payments near consumption increase usage due to fresh cost awareness
Payments made far in advance or after consumptions reduce pressure to use the product
How does timing of payment matter?
Bundling blurs the cost-benefit link, weakening sunk cost effects
Unbundled prices create clearer link, increasing usage
How does price bundling affect the perception of sunk costs and therefore consumption?
When a brand is seen as typical of its category or tradition
Adheres to established norms
Type authenticity
Driven by sincere values or a mission
Reflects genuine care, ethical commitment, or transparency
Moral authenticity
Both boots customer ratings and WTP
Moral authenticity has a stronger effect:
Customers are willing to pay more when brand is perceived as morally authentic
Type authenticity had positive effect but to a lesser degree
How did each type of authenticity correlate to higher ratings and WTP?
What were the key takeaways of the case? (snapple)
Example of the power of effective IMC (Importance of distribution network : Can help you or take you down)
Interplay between the challenges a brand faces and the corporate culture is key
When out of sync, both the brand and company suffer
Brands can be saved with the right management
being independent and willing to take risks within boundaries without conforming
Autonomous
being “real” in and genuine to the company’s mission
Authenticity
the “coolness” or “suave” associated with being authentic and autonomous
Attitude
ability for someone to be cool because of their usage or association to
Association
How likely are you to recommend (brand) to a friend or college?
Scale 0-10
10 = extremely likely, 5 = neutral, 0 = not likely at all
9 or 10 = promoters
7 or 8 = passively satisfied
0-6 = detractors
NPS
Typical NPS score falls between
10-30
Average NPS score is
16
NPS Range
-100 to +100
high extroversion
prefer exciting brands
high openness to expereince
prefer exciting brands
high conscientiousness
prefer competent brands
high agreeableness
prefer sincere brands
The customer becomes aware of the brand or product.
Example: Seeing a social media ad or a billboard
Awareness / Exposure
The customer starts showing interest and wants to learn more.
Example: Clicking on the ad to visit the website.
Discovery
The customer is actively comparing options and evaluating.
Example: Reading reviews or comparing features.
Evaluation
The customer shows signs of planning to purchase.
Example: Adding a product to their cart or signing up for a discount.
Intent
The customer completes the transaction.
Example: Buying the product.
Purchase (Action)
After a good experience, they stick around and may become repeat customers.
Example: Subscribing, joining a rewards program, or leaving a positive review.
Loyalty
