video 1: decisions high low effort plus class notes Flashcards
high effort
more time, energy, in depth before making a choice. Certain types of products we have high motivation
Motivation comes from either high price of the product, or if the product is important to us, if the product symbolizes us, expresses who we are
can come from high ability , high opportunity
low effort
less time, less energy in making a choice, this may come from low motivation, low pricwe don’t know much about the product
Low effort decisions may stem from: Low motivation, low price, less important for work,low ability, low opportunity
step 1 of making high effort decisions
We find info about different brands of cars within our price range. We might find info about the attributes/ features of the brands
We can form a brand attribute matrix → tables of brands and
step 2 of making high effort decisions
What decision rule do we want to use → how do you want to use this info pick one brand
two day decision rules?
compensatory and non compensatory
compensatory
aka TORA
we form attitudes toward the brand that we are considering
we use a mental process and formula which is attitude= performance times importance
more positive attitude= more likely we will choose that brand
Tora four step process
- list attributes
- think about performance and importance of each
- combime perfromance/ importance of each
- add up the utility (value) from all attributes
how can managers use the Tora
create customer surveys to ask people t form attitudes and how imortant , have to decide though which attributes to focus on and helps managers figure out which attributes should be advertised to consumers
how do managers affected attributes
They could add new attributes and highlight their importance, change beliefs or compare with competition.
how is the tora a tool for social marketers
want to market ideas and products for not for profit but for positive social; change ,Design ad around important attributes in different customer segments
why is it called the compensatory decision rule
weakness in one attribute will be compensated in the strength in the other attribute . true to a certain extent
non compensatory decision rule
there are minimum cutoffs
two models of the non compensatory
conjuctibe and disjucntive
conjunctive
high cutoffs . you have a minimum set of requirmemeys and you eliminate whatever doesnt meet the minimum requirmemets. Last brand left standing is the one you choose. Like a survival method
We apply this model when all of the attributes are highly important
What your buying has to fit everything you want or else you dont get it.
disjunctive
some attributes are more important or less. We use different cutoffs. Lower cutoffs= less important attributes and vise versa.
We count the number of qualified attributes
We choose the alternative that has the greatest number of acceptable features
We count the number of qualified attributes and the largest number of qualified attributes we choose
when theres a lot of info, what decision model os used
Non compensatory decision is used when theres a lot of info, a lot of brands to reduce the info and then will use compensatory after
when making high effort decisions, what else do we use
our emotions
two tyoes of affective influences when making high effort
1) Emotions at point of sale
Often new product trials happen for high effort products
hedonic products
Ex: testing an iphone in the store
Using a product creates positive emotions
After we try out the product, we see if we want to buy it or not depending on how much pleasure it gave us
2) Affective forecasting
Making predictions about we are likely to feel in the future
Ex: auctions. We tend to think we need this item now and will lose out if we dont buy it. We overestimate and pay more at auctions.
low effort decisions involve which two heuristics
Cognitive heuristics (logic based shortcuts like choosing the cheapest)
Affective heuristics (emotional based shortcuts like choosing something familiar )
different types of heuristics
performance based, price based, attribute based, habitual based
low effort vs high
low decisions are based on single or few attributes
two different phases
We have to look inside the consumers mind and see how the info flows: two steps which is phase 1 problem recognition and search and phase 2 is decision making and judgment
problem recognition
Shows the gap between actual and ideal state
Increase gap by→ increase motivation to act:
Point out low actual state
Provide high ideal state
Contrast low actual vs high idea states → put side by side visually
low actual state
Point out low actual state
How to point it out
Prove that the actual state is low
Show that an item is in low quality and you need a product to fix it
Give a reference point. Ex: crest selling whitening strips. They show teeth compared to a kleenex and shows how yellow it is
ex : Oral hygene app→ when visually demonstrating what people are missing they apply it to themselves more, the oral hygene app will show you your mouth then recommend many products to you based on your mouth and the picture you gave of your mouth
provide high ideal state
Ex: good looking people
Aspiring to something
Customers have become wary and have caught into the fact that adversiitng sells smtg that is unrealistic → you change your appearance on social media, fake news, facetune
We value authenticity → brands are rebranding themselves are more authentic. Ex: dove
sources of authenticity
1) Realistic ideal points in retailing/ advertising
2) Transparent and fair manufacturing process→ “not tested on animals, good for the environment”
3) Original designs/ handmade products → not mass produced, Amazon has a handmade section, and specific quantity sold
4) Firms origin story with founders→ humanize the brand, flesh and blood person behind the company, ex: brand origin story, background of founders
5) Firms behaviour consistent with its values/ mission statement→ go on ben and jerry website or patagonia, they list everything they do not talking about sales but they list it so that they can increase sales
Construct low actual vs high ideal states
Put them side by side
Ex: before and after software showing nose jobs
internal search
Easily recalled (familiar) brand in memory have an advantage
Consumer search is moving from internal to external
memory
brand names
brand attributes
external search
Ex: google
Brand names
Brand attributes
Consumers searching more within online retailers
Consumers searching more within online streaming services
Want to be high on this
organic search
Organic search: search engine optimization
Google creates an index of the internet based on website info
When a search term is entered, google creates a ranked list of relevant pages using a proprietary algorithm based on: page quakoty of web, repeated use of terms on website, quality and quantity of links pointing to the website
brand attribute matrix can be formed through which types of searches
external and internal
what is variety seeking
Variety seeking is another form of decision-making (want something different than usual)
There are some product groups that you seek variety over time→ ex: clothes. Zara does fast fashion to keep having new products
seeking variety is something that should be satisfied
we desire something different
Different customer segments can have different important attributes
men vs women may have different opinions on shampoo
Lyft offers an option where you get a lower price but you have to wait longer, another option for customers is to pay more to but get a car sooner→ Customers can self select
Allows customers to self-segment
primary vs secondary data
Primary is to go directly to customers yourself whereas secondary is to get already published data or to use a second party to get information about consumers
numerical cutoffs
price
tora strentghs and weaknesses
Strengths:
ensures we don’t miss important attributes relevant to decision-making
Ensures rational/long-term analysis of information
Allows objective comparisons between brands/ choice options
At dealerships they will only have a few brands not very many so you have to use the TORA system
Weakness:
Incomplete set of attributes can bias results
Does not permit cutoffs on attributes
Does not highlight the primacy of feelings (ex: people fall in love with a mini cooper after seeing it/ testing it in person)
Affective and cognitive appeals in advertising
When new iphone is launched, not info heavy, more pictures→ want to create positive emotions
Emotions come automatically
Emotions influence subsequent thinking through confirmation bias
The smart way to market is to ask did: i market the product to induce positive emotions in consumers
five senses to influence choice
Visual, audio, Smell→ Makreter has more control over visual, audio smell (ex: tv, radio, print, stores). Smell is not that widely used so you can use this sense to stand out
Taste and touch→ Marketer has less control over taste and touch (ex: product sampling by consumers). Not in our hands. We dont know if people will stop and smell our product sampling, mo
smell in departament stores
If you go to the bay, you have tp go through the perfume section to get to clothes
Smell influences decision by mood, memory and brand → liking for the brand
smell and mood
Pleasant smell→ positive mood→ liking
Positive mood→ leads to people staying more in the store→ longer you stay more likely to buy
memory route
Useful bc unlike the other 5 sense, memory and smell are very close to each other in the brain
Memory and smell are very close in the brain and evoke emotional reactions in consumers→ can use this to promote products ex: candle companies that offer candles to make candles to remember special events (first camping trip, first christmas, etc)
language and decision making
Language should avoid negative feelings and create positive feelings
Cultural differences in decision making
Should use real people instead of celebrities, compare your brand with ocmeptitiors→ these things will differ depending on the country
Feature real people who use the product
Endorsed by famous people you respect
Research marketing techniques that work best in each specific country
Marketing techniques, including the use of real people, celebrities, and competitive comparisons, must be tailored to each country’s cultural context. Conducting local market research and understanding cultural norms and consumer behavior is essential to create effective campaigns. By adapting to the local culture, brands can build stronger connections and foster greater trust among consumers.
how to increase the gap
point out low actual state
provide high ideal state
contrast low actual vs high ideal states
high ideal states may be seen as
not autehntic and we value authenticity so brands are rebranding themselves are more authentic
why do easily recalled brands have an avdnayage
bc we like comfort
Online Retailers/Streaming Services Have Advantages on External Search
- Can recommend / sell products to consumers
- Can get consumer search data for targeted product offers / developing new products
luxury products
Forced to asked staff for price information => consistency principle
* More reliance on visual information => emotional decision-making
no price info provided
cant use price cutoff
Single (or two) attribute choice is not the only way to make low
effort decisions - there are other ways
making high effort decisions
Variety-seeking (vs. regular) decision-making, e.g., Cointoss
* Group (vs individual) decision making, e.g., Choozum
Smell Must Be Consistent With
brand
ability vs opportunity
ability (internal factors)
opportunity (external factors)
