MRKT 452 Lecture Notes - Lecture 3: Starbucks, Subliminal Stimuli
11 Jun 2018
School
Department
Course
Professor
High%vs.%Low%Effort%Decisions
High%Effort%-!"#$%&'()#&*+'#&,$%&#$#)-.
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;
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High%Effort%Decision-Making
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I(-$+*+2#&B#3+!+($!
Compensatory%Decision%Rule%-6#,7$#!!#!&+$&($#&,**)+=?*#&3,$&=#&
3('"#$!,*#%&=.&!*)#$-*0&($&,&%+55#)#$*&,**)+=?*#
G0#().&(5&J#,!($#%&<3*+($ (G@J<)%-K&!*#"&'#$*,8&")(3#!!&(5&
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1.
L)(3#!!
A+!*&,**)+=?*#!i.
G0+$7&,=(?*&"#)5()',$3#&,$%&+'"()*,$3#&(5&#,30&,**)+=?*#ii.
I('=+$#&"#)5()',$3#&,$%&+'"()*,$3#&(5&#,30&,**)+=?*#&>&
#M-M&6#+-0*#%&?*+8+*.&N2,8?#O&5)('&*0,*&,**)+=?*#
iii.
<%%&?*+8+*.&N2,8?#O&5)('&,88&,**)+=?*#!&>&,**+*?%#&*(6,)%!&*0#&
")(%?3*
iv.
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L)(%?3*&B#2#8("'#$*P
<%2#)*+!+$-P
<**)+=?*#&Q(*&
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")(3#!!+$-&!"##%
E.g.%HP%
Pavilion
Brand%
performs%
well
L(!+*+2# G).&*(&',7#&
,**)+=?*#&'()#&
+'"()*,$*
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Brand%
performs%
poorly
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RM
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")(3#!!+$-&!"##%&,$%&
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E.g.%Lays <**)+=?*#&Q(*&
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$,*?),8&+$-)#%+#$*!
Brand%
performs%
well
L(!+*+2# G).&*(&',7#&
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Brand%
performs%
poorly
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Non-Compensatory%Decision%Rule%-6#,7$#!!&+$&($#&,**)+=?*#&3,$$(*&
=#&3('"#$!,*#%&=.&!*)#$-*0&(5&,&%+55#)#$*&,**)+=?*#
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a.
B+!W?$3*+2#&I?*(55&>&'+:#%&3?*(55!
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E.g.%3($!?'#)!&*#$%&*(&",.&'()#&,*&,?3*+($!&*0,$&,*&)#-?8,)&!,8#!
;
Strengths%and%Weaknesses%of%TORA
Strengths Weaknesses
9$!?)#!&+'"()*,$*&5,3*()!&*0,*&+$58?#$3#&
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+$5()',*+($&>&+'"()*,$*&5()&0+-0H#55()*&
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4-$()#!&")+()&,**+*?%#!&
N3($5+)',*+($&
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=#!*&",.(55!&>&0+-0&+'"()*,$3#V8(6&
"#)5()',$3#
4$3('"8#*#&!#*&(5&,**)+=?*#!&3,$&
=+,!&)#!?8*!
<88(6!&(=W#3*+2#&N$?'#)+3,8O&3('",)+!($!&
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,3)(!!&"#("8#V*,!7
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3,$&=+,!&)#!?8*!
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F('#&,**)+=?*#!&',.&$(*&=#&,=8#&
*(&=#&+$58?#$3#%&=.&',$,-#)!
Low%Effort%Decision-Making%-=,!#%&($&30(+3#&0#?)+!*+3!&N+5&:&*0#$&.O]&!+$-8#&()&($8.&
,&5#6&,**)+=?*#!
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5%Senses
Visual%
Audio
Smell
^^"marketer"has"more"control"(e.g."TV,"radio,"print,"stores)"^^
Taste%
Touch
^^"marketer"has"less"control"(e.g."product"sampling"by"consumers)"^^
Subliminal%Decision-Making
L#)3#"*?,8&*0)#!0(8%&(5&^&!#$!#!&;
I,$&'#!!,-#!&=#8(6&*0#&*0)#!0(8%&+$58?#$3#&")(%?3*&30(+3#;
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E.g.%D((%&Z&=#2#),-#&!?=8+'+$,8&,%2#)*+!+$-&6+*0&"+3*?)#!&%?)+$-&'#,8*+'#!
Decision(Making
X#%$#!%,.]& RK&1,)30&SYR_
RR`KY&<1
High%vs.%Low%Effort%Decisions
High%Effort%-!"#$%&'()#&*+'#&,$%&#$#)-.
/+-0&1(*+2,*+($
/+-0&")+3#
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4'"()*,$*&5()&6()7
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1,7#!&'#&8((7&-((%
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/+-0&<=+8+*.&>&'()#&7$(68#%-#&,=(?*&")(%?3*&5#,*?)#!;
/+-0&@""()*?$+*.&>&'()#&*+'#&,2,+8,=8#&*(&*0+$7;
Low%Effort%-!"#$%&8#!!&*+'#&,$%&#$#)-.
A(6&1(*+2,*+($
A(6#)&")+3#
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A#!!&+'"()*,$*&5()&6()7
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B(#!&$(*&',7#&'#&8((7&-((%
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B(#!&$(*&#:")#!!&60(&4&,'
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A(6&@""()*?$+*.&>&8#!!&*+'#&*(&*0+$7;
High%Effort%Decision-Making
C),$%&<**)+=?*#&1,*)+:;
D+)'!&*).&*(&5+88&3?!*('#)!E&',*)+:&6+*0&*0#+)&(6$&=),$%!&>&'?8*+"8#&
2,)+,*+($!
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I(-$+*+2#&B#3+!+($!
Compensatory%Decision%Rule%-6#,7$#!!#!&+$&($#&,**)+=?*#&3,$&=#&
3('"#$!,*#%&=.&!*)#$-*0&($&,&%+55#)#$*&,**)+=?*#
G0#().&(5&J#,!($#%&<3*+($ (G@J<)%-K&!*#"&'#$*,8&")(3#!!&(5&
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1.
L)(3#!!
A+!*&,**)+=?*#!
i.
G0+$7&,=(?*&"#)5()',$3#&,$%&+'"()*,$3#&(5&#,30&,**)+=?*#
ii.
I('=+$#&"#)5()',$3#&,$%&+'"()*,$3#&(5&#,30&,**)+=?*#&>&
#M-M&6#+-0*#%&?*+8+*.&N2,8?#O&5)('&*0,*&,**)+=?*#
iii.
<%%&?*+8+*.&N2,8?#O&5)('&,88&,**)+=?*#!&>&,**+*?%#&*(6,)%!&*0#&
")(%?3*
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B+,-$(!*+3&G((8&5()&1,$,-#)!&H60+30&,**)+=?*#!&!0(?8%&*0#&=),$%&
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E.g.%HP%
Pavilion
Brand%
performs%
well
L(!+*+2#
G).&*(&',7#&
,**)+=?*#&'()#&
+'"()*,$*
B(&$(*0+$-
Brand%
performs%
poorly
Q#-,*+2#
B(&$(*0+$-
<%%&$#6&,**)+=?*#!&,$%&
0+-08+-0*&*0#+)&+'"()*,$3#
RM
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")(3#!!+$-&!"##%&,$%&
,%2#)*+!#&5,!*&")(3#!!+$-&
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E.g.%Lays <**)+=?*#&Q(*&
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$,*?),8&+$-)#%+#$*!
Brand%
performs%
well
L(!+*+2# G).&*(&',7#&
,**)+=?*#&'()#&
+'"()*,$*
B(&$(*0+$-
Brand%
performs%
poorly
Q#-,*+2# B(&$(*0+$- <%%&$#6&,**)+=?*#!&,$%&
0+-08+-0*&*0#+)&+'"()*,$3#
RM
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$,*?),8&+$-)#%+#$*!
SM
I('",)#&6+*0&
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F0()*&=,**#).&8+5#&3,$&=#&3('"#$!,*#%&=.&3('",3*&!+U#ii.
Non-Compensatory%Decision%Rule%-6#,7$#!!&+$&($#&,**)+=?*#&3,$$(*&
=#&3('"#$!,*#%&=.&!*)#$-*0&(5&,&%+55#)#$*&,**)+=?*#
F('#&,**)+=?*#!&,)#&$($H3('"#$!,*().&>&#M-M&8(6&!,5#*.&,$%&
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§
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<!!?'#!&,88&*0#&,**)+=?*#!&,)#&0+-08.&+'"()*,$*P
I0(!#$&,8*#)$,*+2#&+!&*0#&($8.&!?)2+2+$-&,8*#)$,*+2#P
a.
B+!W?$3*+2#&I?*(55&>&'+:#%&3?*(55!
X0#$&*0#)#&+!&,&2,)+,*+($&+$&,**)+=?*#&+'"()*,$3#P
I0(!#$&,8*#)$,*+2#&0,!&-)#,*#!*&$?'=#)&(5&,33#"*,=8#&
5#,*?)#!
P
b.
2.
1,)7#*!&!0(?8%&0+-08+-0*&3?*(55!&*0,*&5,2()&*0#+)&=),$%&N")#5#),=8.&
$?'#)+3,8O
TY&%,.&-?,),$*##
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○
<55#3*+2#&D()#3,!*+$-&>&(2#)#!*+',*#&5?*?)#&)#-)#*
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E.g.%3($!?'#)!&*#$%&*(&",.&'()#&,*&,?3*+($!&*0,$&,*&)#-?8,)&!,8#!
;
Strengths%and%Weaknesses%of%TORA
Strengths Weaknesses
9$!?)#!&+'"()*,$*&5,3*()!&*0,*&+$58?#$3#&
%#3+!+($H',7+$-&,)#&$(*&'+!!#%&(?*&>&+*&+!&,&
!.!*#',*+3&,"")(,30
1+!!#!&-?*&5##8+$-!
I,"*?)#!&),*+($V*0(?-0*5?8&,$,8.!+!&(5&
+$5()',*+($&>&+'"()*,$*&5()&0+-0H#55()*&
%#3+!+($!
4-$()#!&")+()&,**+*?%#!&
N3($5+)',*+($&
=+,!V),*+($,8+U,*+($O
<88(6!&+%#$*+5+3,*+($&(5&',$,-#)+,8&,3*+($!&6+*0&
=#!*&",.(55!&>&0+-0&+'"()*,$3#V8(6&
"#)5()',$3#
4$3('"8#*#&!#*&(5&,**)+=?*#!&3,$&
=+,!&)#!?8*!
<88(6!&(=W#3*+2#&N$?'#)+3,8O&3('",)+!($!&
=#*6##$&=),$%!V30(+3#&("*+($!
J#8#2,$*&,**)+=?*#!&3,$&2,).&
,3)(!!&"#("8#V*,!7
[,-?#&%#!3)+"*+($&(5&,**)+=?*#!&
3,$&=+,!&)#!?8*!
B(#!&$(*&"#)'+*&3?*(55!
<**)+=?*#&"#)5()',$3#&3,$&=#&
=+,!#%&=.&(*0#)&=),$%!&+$&*0#&
3($!+%#),*+($&!#*
B+55+3?8*&*(&\?,$*+5.&"#)5()',$3#&
(5&!('#&,**)+=?*#!&6+*0(?*&
,3*?,88.&#:"#)+#$3+$-&*0#'
F('#&,**)+=?*#!&',.&$(*&=#&,=8#&
*(&=#&+$58?#$3#%&=.&',$,-#)!
Low%Effort%Decision-Making%-=,!#%&($&30(+3#&0#?)+!*+3!&N+5&:&*0#$&.O]&!+$-8#&()&($8.&
,&5#6&,**)+=?*#!
I(-$+*+2#
L#)5()',$3#
○
L)+3#
○
/,=+*
○
A(.,8*.&
○
;
<55#3*+2#
A+7+$-
○
D,'+8+,)+*.
○
[,)+#*.
○
4'"?8!#
○
;
5%Senses
Visual%
Audio
Smell
^^"marketer"has"more"control"(e.g."TV,"radio,"print,"stores)"^^
Taste%
Touch
^^"marketer"has"less"control"(e.g."product"sampling"by"consumers)"^^
Subliminal%Decision-Making
L#)3#"*?,8&*0)#!0(8%&(5&^&!#$!#!&;
I,$&'#!!,-#!&=#8(6&*0#&*0)#!0(8%&+$58?#$3#&")(%?3*&30(+3#;
X()7!&60#$&.(?&!*)+7#&60#$&*0#&+)($&+!&0(*&>&+$3)#,!#!&30(+3#&(5&58,!0#%&
=),$%
F?=8+'+$,88.&58,!0
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I0((!#&,&=),$%
○
;
E.g.%D((%&Z&=#2#),-#&!?=8+'+$,8&,%2#)*+!+$-&6+*0&"+3*?)#!&%?)+$-&'#,8*+'#!
Decision(Making
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Document Summary
High effort - spend more time and energy. High ability = more knowledge about product features. High opportunity = more time available to think. Low effort - spend less time and energy. Low ability = less knowledge about product features. Firms try to fill customers" matrix with their own brands = multiple variations. Brands try to keep competitors out of customers" matrix = starbucks everywhere. Try to make themselves non-comparable with other brands. Compensatory decision rule - weaknesses in one attribute can be compensated by strength on a different attribute a. Theory of reasoned action (tora) - 4 step mental process of attitude formation. More positive attitude is = more likely choice is. Think about performance and importance of each attribute. Combine performance and importance of each attribute = e. g. weighted utility (value) from that attribute. Add utility (value) from all attributes = attitude towards the product.
