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Lecture 1

Management and Organizational Studies 3321F/G Lecture Notes - Lecture 1: Dan Ariely, Reference Group, Sensation (Band)

8 pages14 viewsWinter 2018

Department
Management and Organizational Studies
Course Code
Management and Organizational Studies 3321F/G
Professor
Beth Lee
Lecture
1

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WEEK 1: PERCEPTION
LECTURE 1 AND CHAPTER 2 (Lecture slides)
SENSATION AND PERCEPTION
Sensation: The immediate and direct response of the sensory organs to
stimuli
o eyes, ears, nose, mouth, fingers……to basic stimuli……such as
light, colour,sound, odour, and texture
o Our world is a tapestry of stimulation
o Are selected, organized and interpreted
Perception: The process by which an individual selects, organizes, and
interprets stimuli
o Marketers contribute to the wild array of stimulation
o Ads, radio, billboards, packaging--media is everywhere…
IN CLASS NOTES
Most times the brands we choose reflect our personalities
Ideal vs. Actual self
Brand Personality: imagine Harley Davidson as a person
o When brands work hard to give their brands a personality we can
imagine certain products as people
Decision Making process we weigh pros and cons before making a
rational decision
o More research shows that we don’t make rational decisions
o Ex: Dan Ariely asked regular people if they liked chocolate and
showed them two different chocolates (Lindor and Kisses)
o Most people know that Lindor tastes better and is better quality
o If Lindor was 15 cents and kisses was one cent 73% chose Lindor
and 27% chose kisses
o He did this multiple times and people still chose Lindor
o Then he changed the price and made LIndor 14 cents and kisses
for free
o 31% chose Lindor and 69% chose kisses
o In terms of pricing it only went down by one cent but yet most
people switched over
o If you were a rational decision maker and you chose Lindor initially
then you should choose the Lindor again
Reference Group (Dissociative) (class poll)
o 10 oz vs 12 oz steak most were okay with ordering the 10 oz
o But if the 10 oz was called ladies cut they didn’t want to order
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o But if the 10 oz was called chefs cut they would order
o This was because men did not want to be associated with
femininity this describes the dissociative reference group
PERCEPTUAL PROCESS
The green boxes are sensations
The orange circles are perception
SENSORY SYSTEMS:
VISIONS
Colour and Mood : the way we interpret different colours relate to the
decisions were going to make
o Warm colours: Activity and excitement
- Red: creates feelings of arousal and stimulate appetites
o Cool colours: restful and calming
- Blue: more relaxing
o Color provokes and influence emotion
o Reaction to color is both biological and cultural
Symbolic value and cultural meanings
Color in packaging design is critical
Trade dress: colors associated with specific companies
Older people see colors in a dull cast and prefer white and brighter tones
Mature consumers likely choose a white car
o Lexus makes 60% of their vehicles in white
Container size can influence the amount we consumer
o Consumers ate 45% more popcorn from large as compared to
medium popcorn buckets
o Tend to pour over 30% more into the shorter, wider glass than a
taller glass
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o Consumers eat more from smaller packs of candy when multiple
small packs are available
o College students ate more M&Ms when given bowls that have ten
vs. seven colors of M&Ms
SMELL
Smell, memory and mood
o Our responses to scent result from early associations that bring to
mind good or bad feelings
o One study found the smell of fresh cinnamon buns induced sexual
arousal in males
o Scent marketing: from cars to fragrances
Smell and gender/age
Smell and buying: Pleasant-smelling environments have a positive effect
on shopping behavior
SOUND
Sound and mood
o Fast music: Energizing
o Slow music: Soothing
o Sound affects behavior: airline passengers move to their seats
faster with an up-tempo playing
o Individual sounds called phonemes might be more or less preferred
by customers (an i-sound would be lighter than an a-sound)
Music and shopping behavior
o Slow tempo: encouraging leisurely shopping, more relaxing
o Fast tempo: allowing greater turnover, more stimulation
o Music in factories can reduce absenteeism
o Certain high pitched sounds only teens can hear, allow ring tones
that their parents wont hear
TOUCH
Touch and mood
o Depending on how touched, feeling stimulate or relaxed
Touch and buying
o Consumers who are touched by a salesperson are more likely to
have positive feelings; to evaluate both the store and salesperson
positively
o Waiters who touch patrons get bigger tips
Heptic senses: touch is the most basic of senses, we learn this before
vision and smell
Touching affects product experience
- Touching an item forms a relationship with the product
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