Week 4 Marketing Communications when Consumer Reaction Happens Flashcards
What happens in a classic consumer decision journey?
Consumers engage in an extended consideration and evaluation phase before either entering into the loyalty loop or proceeding into a new round of consideration and evaluation that may lead to the subsequent purchase of a different brand.
What happens in the new consumer decision journey?
The new journey compresses the consider step and shortens or entirely eliminates the evaluate step, delivering customers directly into the loyalty loop and locking them within it.
List the factors that affect the consumer decision journey.
- Social Factors -
- Individual Factors
- Cultural Factors
- Psychological Factors
What are the factors to determine the level of consumer involvement?
- Previous experience - high = low inv.
- Interest - high = high inv.
- Perceived risk of negative consequences - high = high inv.
- Social visibility - high = high inv.
Define high-involvement purchases.
Require extensive and informative promotion to the target market.
Define low-involvement purchases.
- Require in-store promotion, eye-catching package design, and good displays
- Coupons and 2-for-one offers promote low-involvement items.
Define Physical Reactance Theory.
If a consumer feels that that freedom of choice is being threatened, they will react negatively to oppose what the ad’s objective.
What is the 1st hypothesis of Findings of LaVoie et al. (2017) ?
H1: Cigarette warning labels with an image increase freedom threat perceptions compared with cigarette warning labels without an image.
What is the 2nd hypothesis?
H2: Freedom threat perceptions are positively associated with psychological reactance image.
What is the 3rd hypothesis?
H3: Freedom threat perceptions mediate the relationship between warning labels (whether text or image) and psychological reactance.
What is the 5th hypothesis?
H5: Compared with warning labels without an image, exposure to ciggy warning labels with a graphic image results in (a) greater freedom threat perceptions, (b) greater reactance.
What is the 6th hypothesis?
H6: High trait-reactant individuals experience (a) greater freedom threat perceptions and psychological reactance and (b) less favourable source appraisal compared with low trait-reactant individuals.
Define Endowment effect.
The hypothesis that people ascribe more value to things merely because they own them.
What is your definition of the endowment effect?
People tend to value what you have more than what others have even though its the same thing.
