RSM353 Final notes.docx

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University of Toronto St. George
Rotman Commerce
Scott Hawkins

Ch.2 Perception 10/29/2012 6:46:00 PM  Sensation: immediate response of our sensory receptors  Perception: process by which these sensations are selected, organized and interpreted  Three stages of perception  Exposure  Attention  Interpretation  Hedonic Consumption: multisensory, fantasy and emotional aspects of consumers’ interactions with products  Sensory marketing: extra attention to the impact of sensation on our product experiences  Trade Dress: company’s granted exclusive color  Kansei Engineering: philosophy that translates customers’ feelings into design elements  Exposure: degree to which people notice a stimulus that is within range of their sensory receptors  Psychophysics: science that focuses on how the physical environment is integrated into our personal, subjective world  Absolute threshold: minimum amount of stimulation that can be detected on a sensory channel  Differential threshold: ability of a sensory system to detect changes in a stimulus or differences between two stimuli  Just noticeable difference (JND): minimum change in a stimulus that can be detected  Weber’s Law: the stronger the initial stimulus, the greater the change must be for it to be noticed o Constant increase/decrease necessary for the stimulus to be noticed = the minimal change in intensity of the stimulus required to be just noticeable to the person (JND)/the intensity of the stimulus before the change occurs  Subliminal Perception  Threshold = limen  Stimuli that fall below the limen are called subliminal  Subliminal perception: when stimulus is below the level of the consumer’s awareness  Embeds: tiny figures that are inserted into magazine advertising by using high speed photography or airbrushing  Subliminal auditory (sound) techniques  Attention: the extent to which the brain’s processing activity is devoted to a particular stimulus  Perceptual selectivity: people attend to only a small portion of the stimuli to which they are exposed  Perceptual filters: based on consumer’s past experiences influence what they decide to process  Perceptual vigilance: factor in selective exposure  Perceptual defense: flip side of perceptual vigilance  Adaptation: degree to which consumers continue to notice a stimulus over time  Factors o Intensity o Duration o Discrimination o Exposure o Relevance  Interpretation  The meaning that people assign to sensory stimuli  Schema: set of beliefs  Priming: certain properties of a stimulus will more likely evoke a schema than others  Gestalt Psychology: people derive meaning from the totality of a set of stimuli rather than from any individual stimulus  Principle of closure: consumers tend to perceived an incomplete picture as complete  Principle of similarity: consumers tend to group together objects that share similar physical characteristics  Figure-ground principle: one part of a stimulus will dominate while other parts recede into the background  Semiotics: correspondence between signs and symbols and their role in the assignment of meaning  Object: product that is the focus of the message  Sign: sensory imagery that represents the intended meanings of the object  Interpretant: meaning derived  Icon: sign that resembles the product in some way  Symbol: sign that is related to a product through either conventional or agreed upon associations  Hyperreality: becoming real of what is initially stimulation of hype  Positioning strategy: fundamental part of a company’s marketing efforts as it uses elements of the marketing mix to influence the consumer’s interpretation of its meaning  Positioning dimensions  Price leadership  Attributes  Product class  Occasions  Users  Quality Ch3 Learning and Memory 10/29/2012 6:46:00 PM  Cognitive Learning Theory  Stresses the importance of internal mental processes  Observational Learning: when people watch the actions of others and note the reinforcements they receive for their behaviours o Modeling: process of imitating the behaviour of others o Attention -> retention -> production -> motivation -> observational learning  Role of memory in learning  Memory: involves a process of acquiring information and storing it over time so that it will be available when needed  Encoding: information is placed in memory  Storage: information is retained  Retrieval: information stored in memory is found  External inputs -> encoding -> storage -> retrieval  Post-experience advertising: alter actual memories when it is very similar to or activates memories about the actual experience  Encoding of information for later retrieval  Sensory meaning: colour/shape  Semantic meaning: symbolic associations  Episodic memories: those that relate to events that are personally relevant  Flashbulb memories: sudden trigger of memory recall  Memory Systems o Sensory memory: permits storage of the information we receive from our senses  Temporary  If the information is retained for further processing, it passes through an attentional gate and is transferred to short-term memory o Short-term memory: stores information for a limited period of time and its capacity is limited  RAM, working memory  Input may be stored acoustically or semantically  Chunking: information is stored by combining small pieces into larger ones o Long-term memory: system that allows us to retain information for a long period of time  Elaborative rehearsal: information to enter into long- term memory from short-term memory  Storing information in memory  Activation models of memory: the more effort it takes to process information, the more likely it is that information will be placed in long-term memory  Knowledge structures: storage units  Evoked set: group of brands of appropriate category  Spreading activation: allows consumers to shift back and forth between levels of meaning o Brand specific o Ad-specific o Brand identification o Product category o Evaluative reactions  Schema: cognitive framework that is developed through experience  Script: a sequence of procedures that is expected by an individual  Retrieving information for purchase decisions  Retrieval: process of accessing information from long-term memory  State dependent retrieval: people are better able to access information if their internal state is the same at the time of recall as it was when the information was learned  Mood congruence effect: underscores the desirability of matching a consumer’s mood at the time of purchase when the marketer is planning exposure to marketing communications  Salience: prominence or level of activation in memory  Von Restorff effect: increased the novelty of a stimulus also improves recall  Unipolar emotions: either wholly positive or wholly negative  Interference: as additional information is learned, it displaces earlier information  Nostalgia: bittersweet emotion  Retro brand: updated version of a brand from a prior historical period  Problems with memory measures  Response biases  Memory lapses  Memory for facts VS feelings  Memory of product information can be measured  Recognition  Recall Ch.7 Attitudes 10/29/2012 6:46:00 PM  Attitude: general evaluation of people, objects or issues  Attitude object: anything toward which a person has an attitude  Attitudes are determined by a person’s motives  Functions of attitudes o Utilitarian function: reward and punishment o Value-expressive function: express the consumer’s central values or self-concept o Ego-defensive function: attitudes that are formed to protect the person, either from external threat or internal feelings o Knowledge function: attitudes that are formed as the result of a need for order, structure or meaning  ABC Model of Attitudes  Affect: the way a consumer feels about an attitude object  Behaviour: person’s intentions to do something with regard to an attitude object  Cognition: beliefs a consumer has about an attitude object  Hierarchy of effects: explains the relative impact of the three components  High involvement o Cognition -> affect -> behaviour -> attitude based on cognitive information processing  Low involvement o Cognition -> behaviour -> affect -> attitude based on behavioural learning process o Less important the product is to consumers, the more important are many of the marketing stimuli  Zajonc’s Model o Affect -> Behaviour -> Cognition -> attitude based on hedonic consumption  Product Attitudes don’t tell the whole story  Attitude toward the advertisement o Defined as a predisposition to respond in a favourable or unfavourable manner to a particular advertising stimulus during a particular exposure occasion  Feelings of advertisement o Upbeat o Warm o Negative  Forming Attitudes  Classical conditioning: repeatedly paired with a jingle  Instrumental conditioning: consumption of the attitude object is reinforced  Levels of commitment to an attitude o Compliance: lowest involvement, helps gain rewards and avoid punishments and can be easily changed o Identification: attitudes are formed so that the consumer will feel similar to another person or group o Internalization: high involvement, part of the person’s value system, hard to be changed  The Consistency Principle  Principle of cognitive consistency: consumers value harmony among their thoughts , feelings and behaviours and they are motivated to maintain uniformity among these elements  Theory of cognitive dissonance: when a person is confronted with inconsistencies among attitudes or behaviours, he or she will take some action to resolve this dissonance by changing an attitude or modifying behaviour  Self perception Theory: people use observations of their own behaviour to determine what their attitudes are, just as we assume that we know the attitudes of others by watching what they do o Foot in the door technique o Low ball technique o Door in the face  Social judgement theory: people assimilate new information about attitude objects in the light of what they already know or feel  Latitudes of acceptance and rejection: ideas that fall within a latitude will be favourably received while those falling outside this zone will not o Assimilation effect: messages that fall within the latitude of acceptance tend to be seen as more consistent with our own position than they actually are o Contrast effect: messages falling in the latitude of rejection tend to be seen as even farther from our own position than they actually are  Balance Theory: co
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